I think everyone is scared of the GDP number. The max I expected from DRN on this move is to go from 38 to 42.80. I feel like I've captured most of that move, and now will look for other trades.
Anna went long yesterday too Dreadwin, so that was a good call. I'm sure she'll be looking to close out those longs today as well, as I can't see this rally lasting into tomorrow.
It was more based on the technicals Jim, as the market just needed a reason to bounce. Let's see if they can continue all day with GDP out tomorrow… LOL
I meant it is unlikely a counter-trend rally can begin with the indices just now starting to tag their downtrending BBs. Maurice Walker has a BB chart on page 3 of his charts………I also went back and checked the Sept 2001 waterfall decline and the SP put up a similar bar on Sept 10. August 26 is also an equidistant 56 days to July 1 low with May 6 flash crash day. (I liked the Aug. 25 numerology better). It also 66 cds from the Summer Solstice high on June 21. July 1 was 66 cds from the April 26 high. And of course it is a major Tdate although T Theory Guru is supposedly disavowing it now. (although as a high) A new 13 day cycle also might come into play tomorrow although it originally was a low cycle (that connects back to May 6) but the last cycle was the August 9 high.
The stock indices have a similarity to the days leading up to the flash crash in regards to its bollinger bands They have hit their lower downtrending BBs and are starting to hug them. The last two days action are mimicking the May 4, 5th days as the BBs are just starting to widen. This is the start of a new move and it appears that a counter -trend rally can begin from this formation. Even if there isn't a crash tomorrow, the indices should continue to hug the decling BBs. Only a complete close inside the BBs would be the first sign of a new rally. And this brings me back to the trader with a great track record the last few months. He waits for a bubble to form with the widening BBs and then waits for the BBs to contract with the indices down at BBs before he takes a counter-trend trade (from what I gather). The BBs are just now starting to widen. I also went back to the 1987 crash, and the market started its crash leg in a similar position. (basically after 2 piercings beneath a downtrending lower BB). Its hard to believe a crash can occur with such a high Mc Summation reading but it happened with the flash crash on May 6. Oil and the currencies are just approaching their lower BBs although the currencies haven't really tagged them yet. Euro is currently doing well in afterhours which would have a positive effect on the markets tomorrow but that could change by the morning.
I think everyone is scared of the GDP number. The max I expected from DRN on this move is to go from 38 to 42.80. I feel like I've captured most of that move, and now will look for other trades.
Lots of overhead resistance San. So even if the market can get back in that falling wedge, I don't think it can hold it too long.
Anna went long yesterday too Dreadwin, so that was a good call. I'm sure she'll be looking to close out those longs today as well, as I can't see this rally lasting into tomorrow.
It was more based on the technicals Jim, as the market just needed a reason to bounce. Let's see if they can continue all day with GDP out tomorrow… LOL
3 % improvement initial claims from a very bad level and the market is euphoric??
Closed the rest of my DRN position around 42. (bought at 38.32)
Currently long oil via UCO
Dow Jones futures before opening bell
http://niftychartsandpatterns.blogspot.com/2010…
2 other DOW 30’s BA,UTX—If there’s a a price channel change there, I can’t see it.
go long at their last lows, looks to be worth trying.
I meant it is unlikely a counter-trend rally can begin with the indices just now starting to tag their downtrending BBs. Maurice Walker has a BB chart on page 3 of his charts………I also went back and checked the Sept 2001 waterfall decline and the SP put up a similar bar on Sept 10. August 26 is also an equidistant 56 days to July 1 low with May 6 flash crash day. (I liked the Aug. 25 numerology better). It also 66 cds from the Summer Solstice high on June 21. July 1 was 66 cds from the April 26 high. And of course it is a major Tdate although T Theory Guru is supposedly disavowing it now. (although as a high) A new 13 day cycle also might come into play tomorrow although it originally was a low cycle (that connects back to May 6) but the last cycle was the August 9 high.
The stock indices have a similarity to the days leading up to the flash crash in regards to its bollinger bands They have hit their lower downtrending BBs and are starting to hug them. The last two days action are mimicking the May 4, 5th days as the BBs are just starting to widen. This is the start of a new move and it appears that a counter -trend rally can begin from this formation. Even if there isn't a crash tomorrow, the indices should continue to hug the decling BBs. Only a complete close inside the BBs would be the first sign of a new rally. And this brings me back to the trader with a great track record the last few months. He waits for a bubble to form with the widening BBs and then waits for the BBs to contract with the indices down at BBs before he takes a counter-trend trade (from what I gather). The BBs are just now starting to widen. I also went back to the 1987 crash, and the market started its crash leg in a similar position. (basically after 2 piercings beneath a downtrending lower BB). Its hard to believe a crash can occur with such a high Mc Summation reading but it happened with the flash crash on May 6. Oil and the currencies are just approaching their lower BBs although the currencies haven't really tagged them yet. Euro is currently doing well in afterhours which would have a positive effect on the markets tomorrow but that could change by the morning.