Note the shooting star backtest of the PRS 133 channel (minutes before the Thursday Heist)
I posted “Fractured Fractals” during that retest, and went short 3 futures. In retrospect, wish I had played it bigger. But I have also found in the past, when taking on inordinately large positions (say 10 to 20 futures) that the market goes out it's way to punish.
It's hard to “trust” this market in any way. The bottom reversal happened in such proximity to the “limit down” market stopping rules, that it further reeks of manipulation
Here is the cool part, the “Fractured Fractals” post, right before the debacle.
Note the comment on the chart: “Backtest of the PRS 133 and breakout to the downside, accelerating fear”, 3 futures stop set right above the PRS lower channel, worked perfectly.
Below is my first attempt at a “Movie”. This shows the Thursday crash in live action. The yellow line is the PRS 133 lower channel. Note the mini-backtest and then the real backtest. No audio on this one.
The backtest of the PRS133 channel line is about halfway through the video….then the plunge.
Testing Video — Below is HTML to Utube and at the bottom is the Utube link directly
I mainly follow the USO, which is currently at 36.31 area. I think it will find good support when it makes a triple bottom (daily chart) around 35.00-35.25 level. You can correlate that with around the 70-71 level for oil. Look for the triple bottom as support, and expect a few days bounce from it.
I wouldn't trade it more then short term though, but you can probably get a bounce from it for at least a few days.
Hi Red, any thoughts on OIL, Im from Canada and OIL runs the TSX. We hit $75 last Friday so I believe its starting to be a great enry point. I know you mentioned SPY at 105, any idea what you believe OIL will do. Im thinking $72 with TSX support at 11500. Using P&F, If 11500 gets broken with good steam then will hit 10850.
Thanks for your time and your blog!!!! Joesph Toronto Canada
interesting, yes? First 10 minutes of Wall Street Week episode from Friday October 16, 1987 just prior to the market crash on black Monday.
http://www.youtube.com/watch?v=2MyToTwag34
from Breakpoint Trades?
Note the shooting star backtest of the PRS 133 channel (minutes before the Thursday Heist)
I posted “Fractured Fractals” during that retest, and went short 3 futures. In retrospect, wish I had played it bigger. But I have also found in the past, when taking on inordinately large positions (say 10 to 20 futures) that the market goes out it's way to punish.
Entire post with charts is found here
http://oahutrading.blogspot.com/2010/05/thursda…
It's hard to “trust” this market in any way. The bottom reversal happened in such proximity to the “limit down” market stopping rules, that it further reeks of manipulation
http://thetaildoesnotwagthedog.blogspot.com/2010/05/i-lied-i-have-to-post-something-i.html
Here is the cool part, the “Fractured Fractals” post, right before the debacle.
Note the comment on the chart: “Backtest of the PRS 133 and breakout to the downside, accelerating fear”, 3 futures stop set right above the PRS lower channel, worked perfectly.
Below is my first attempt at a “Movie”. This shows the Thursday crash in live action. The yellow line is the PRS 133 lower channel. Note the mini-backtest and then the real backtest. No audio on this one.
The backtest of the PRS133 channel line is about halfway through the video….then the plunge.
Testing Video — Below is HTML to Utube and at the bottom is the Utube link directly
http://www.youtube.com/watch?v=qwvH4jraumc
Sun,
Can you post the 105.00/114.80 print, so I can use it in my weekend post?
Thanks
New post this weekend. Hope u enjoy.
Have a good weekend.
http://midasfinancialmarkets.blogspot.com/2010/…
http://www.metatube.com/en/blogs/5547/The-Stock…
http://www.dailymarkets.com/stocks/2010/05/08/r…
He says it could drop to Dow 1,000?!?
New highs on $SPX & $DJI
Top maybe in on $NDX or $RUT
I mainly follow the USO, which is currently at 36.31 area. I think it will find good support when it makes a triple bottom (daily chart) around 35.00-35.25 level. You can correlate that with around the 70-71 level for oil. Look for the triple bottom as support, and expect a few days bounce from it.
I wouldn't trade it more then short term though, but you can probably get a bounce from it for at least a few days.
Hi Red, any thoughts on OIL, Im from Canada and OIL runs the TSX. We hit $75 last Friday so I believe its starting to be a great enry point. I know you mentioned SPY at 105, any idea what you believe OIL will do. Im thinking $72 with TSX support at 11500. Using P&F, If 11500 gets broken with good steam then will hit 10850.
Thanks for your time and your blog!!!!
Joesph
Toronto Canada