If You Can Draw A Straight Line . . .

Discussion in 'Journals' started by dbphoenix, Jun 28, 2013.

Thread Status:
Not open for further replies.
  1. dbphoenix

    dbphoenix

    New highs don't consider volume, though perhaps I don't understand your question. The pullback began 8/13.
     
    #571     Aug 22, 2013
  2. Gringo

    Gringo

    QQQ has been acting weak since the drop. I have noted on the chart places where the signs of weakness became more visible. The longer term trend is still up however on daily there are clear signs of weakness. The permanence of this weakness is debatable but for our purposes it's wiser to be cautious now.

    I would start with posting QQQ daily chart and then in other posts show weekly and monthly situation as well.

    Superman cannot soar without going through General Zod :cool: .

    QQQ Daily:

    [​IMG]

    Gringo
     
    #572     Aug 22, 2013
  3. If new highs don't consider volume, my question is answered. I was thinking that perhaps one should be looking for a more substantial pullback given the lower volume highs.
     
    #573     Aug 22, 2013
  4. Gringo

    Gringo

    QQQ Weekly:

    [​IMG]


    Gringo
     
    #574     Aug 22, 2013
  5. Gringo

    Gringo

    QQQ Monthly shows the path price took over a decade ago. This was the Tech Bubble era and the prices we are reaching now are approaching and into a potential danger zone. There may be turbulence around this altitude.

    QQQ Monthly:
    [​IMG]

    Please note that the bull market started in early 2009 is still intact. We haven't had a recession for 4 years now. Keep the presidential cycle in mind. It's not a guarantee of recession or prolonged weakness but the bull market has been long in the tooth.

    Gringo
     
    #575     Aug 22, 2013
  6. dbphoenix

    dbphoenix

    Since price can rise or fall on high or low volume, volume isn't relevant. That's why new highs and new lows don't consider it.
     
    #576     Aug 22, 2013
  7. dbphoenix

    dbphoenix

    Note also that price has been hugging the midpoint of the trend channel for two months now.
     
    #577     Aug 22, 2013
  8. Gringo

    Gringo

    Oh! I had missed that detail. Nice catch Db. Price has in the past played around the mid of the trend channel quite a bit and overcome it over the 4 years. Are we to assume that the lack of strength to go above the mid is a sign of weakness on part of demand? This message would certainly be more consistent with the information being gleaned from the dailies. Let me know what you think.

    Gringo
     
    #578     Aug 22, 2013
  9. dbphoenix

    dbphoenix

    Given the decline in new highs, I'd say so.
     
    #579     Aug 22, 2013
  10. slugar

    slugar

    So when price broke down out of the hinge this morning then reversed and started back up towards its highs at what point do you reverse and go long if you shorted the break out of the hinge?
     
    #580     Aug 22, 2013
Thread Status:
Not open for further replies.