Dow and its divergence

Discussion in 'Technical Analysis' started by myminitrading, Dec 27, 2006.

  1. I remember in 2003 as we came up off the bottom and the market just kept going higher, I was watching all these divergences and had alot of trouble getting long.

    Fast forward fall 2006 all the indexes are showing divergence on the dailies and weeklies same as 2003, although this time I have been able to hold my nose and just buy, having gone thru this before made it easier.

    The nasdaq has started to show some weakness and it usually is the first to lead the market lower. This run up has had no real retracement, in 2003 we had many nice 300-400 point retracements.

    Every day is different and anything can and will happen.
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  2. I use MACD and have been noticing the divergences as well. I wasn't in the markets in 2003, but I figure I'll keep buying until the trendline is broken. Once that happens, I think we'll have a pretty good correction, but divergences can take quite a while to materialize.
  3. Well well well, it has been a good 5 months for me. Looking at the daily chart on todays close, we have a good opportunity for the bears to seize control, a DOJI STAR set up is their for the taking volume on the last 200 point surge in the last two days was ultra thin. Its all their divergences , light volume,bearish candle, one more trading day in the year 2006.

    Bears is you have been looking for your opportunity it looking you right in the face, what are you waiting for?
  4. The day has just begun, but I am afraid their are NO BEARS left in the markets. Everyone is long and gobble up all tiny dips, big sustained dips have not occurred in 4 months.

    Their is zero risk right now going long, it never goes down.
  5. I am outta here see ya!!!!
  6. I think buying Puts on indexes would work if you do want to bet on the divergences.