Agreed...I kinda suspected it a few days ago, but Autodidact and I got into it awhile back in another thread... In any event, the use of one particular word in his last post struck me as odd and familiar...Sure enough, Autodidact made almost the exact same post with the exact same phrase awhile back...as did: Trader.Fighter SusannaDT Daring noaveragingdown crazyAtrader No.Heat The Voyager NakedNote Still, IM called out some good trades yesterday, so credit due...I just will never understand all of the alias changing (sort of like tossing burner phones).
As much as I would love to say this is very ripe for a dump, considering I am short Indexes and recently added more shorts, have to go with the system that daily and weekly are still in uptrend. Even though on daily made Head & Shoulders pattern, recently broken two pivot lows, more folks seem to want it to do down but volume today shows lower close on less volume than last down close. So I think ES is on the fence, I bought some Call Debit spreads on close. So we will see if Cruz bowing out of Presidential run will have any affect.
I can understand the weekly being in an uptrend, but I would argue most traditional measures for the daily uptrend have been broken with last Friday's break of support.
So its not a pull back? It just has to be a trend reversal? Last Fridays mixed close on chunky volume, Mondays reversal up close. Tuesdays weakness with no new low, on any other time frame we would call this temporary support or just support.
This is why I like the view all of the indicies rather than just the SPX...NYA broke below the ledge and broke trendline support from the 2/11 lows (just as SPX did)...Nasdaq has broken down as well (took out that end of March low and that held on a re-test)...Granted, this might not mean that I short the ES or the EFT's, Option's, but it would keep me from going long it for anything more than a short period of time...
Depends what's being looked at. If you look at Nasdaq's weekly chart, then you see a third attempt to take stocks higher, but instead of a higher high we are getting a third lower high. Weekly oscillations attract position players/investors and short term trading entities too=substantial volume, this isn't a bullish message.
All trades should be entered as being either with the current trend or trend reversal (which means with the new trend). Never enter trades thinking about so called range trading. This tendency will choke off profits in the long run.
My entries are predicated on the momentum of the actual product I'm trading and not making assumptions on trend direction. Predicting trend direction places you at risk for a much greater loss and requires a person to use much larger stop losses.