8/6/10 Friday. ES dropped from 1127 to around 1111 at 05:00 am PDT. This was a drop of almost 16 points. This is quite *significant*. (Dow about 140-150 points). Anything that caused ES to drop 10+ points is significant. Especially in such a short duration. About 5 minutes. (Between 2 yellow circles on the picture.) US market opened at 06:30 am. A drop like that, there is a good chance of bouncing. And it did. Take a Fib measurement. This is crucial. Price retraced about 50% to below 62%. (But far from 76%, let alone 100%). This is DOABLE... for a second stage down run. Any retracement more than 62%, and especially more than 76%... don't bank on it. * Looks like there have already been 3 waves up. * 07:00 am is the exact reversal time from a one-way run (up). Your bet is on a reversal down. The 2-stage runs happen more often than not for "significant", "meaningful" moves.
The second part: Do a Fib PROJECTION based on the retracement. That's your potential Second-Stage Run. A 16 point down run at 05:00 am, it can potentially run another 16 points down. (Dow 140-150 points?) You may not believe in Fibonacci analysis. And some in this forum dismissed it as voodoo. Heck some even dismiss all Technical Analysis as voodoo. Whatever. I didn't make this up. You can see where the price stopped on the second down run. A little over 100%. Okay it wasn't exactly 100.00%, but maybe 105%. That's darn good enough for me. I would have started taking profit at the 90% mark. (Between 2 blue circles) Now market was in a very tight range after 9:00 am. Because it had already done a 2-stage down run, don't believe in any "break" in the down direction. Unlikely to get anywhere. The best is to scoop up some at the low of the tight range and see what happens. (Green rectangle)
In America..they always like to meet at the Top of Empire State Building in New York City. (eg: movie~The Love Affair and Sleepless in Seattle) I think for You and PO should meet at a Special Place like The Bund in Shanghai at nite Just imagine.. strolling along the Bund in the romantic atmosphere with all the Beautiful Gothic, Romanesque & Renaissance, Neo-Classical and Art Deco Architectural Buildings and over ~looking the Huangpu River and Spectacular View of Pudong ..Wow!.. It's amazingly beautiful and romantic! Hope U2 can be CP very soon and meet very soon! P/S: PO .. now you have the 'Greatest Motivation' to be CP .. hehe
What a great parallel! US = #1 nation (so far); China = #2, will be #1 eventually NYC = US's financial center; Shanghai = China's financial center Empire State Building; Oriental Pearl Tower??? Next to Hudson River; Next to Huangpu River View of Manhattan; View of Pudong A Chinese version of "Sleepless in Seattle"...
hehe .. not only the Americans are smart and romantic .. the 'Chinese " also very smart and very romantic LoL
Yes, nothing is free in HongKong. $$$$$ Not necessarily trade in coffee shop, would like to have internet connection with me all the time. Sufing internet, reading books, people watching, sipping coffee, eating deserts complete my afternoon coffee shop activity. Sim trading forex. The tradestation Sim forexaccount looks like it's real time data feed...
wow, it's a very nice hotel. Vintage but luxurious! Thanks for the invites. Next time we can go have a drink at Paulaner after dinner , then dance in Park 97 I only know these old places, used to be very popular. Now there must be more hot places... You have tell me all the cool places...
Yesterday I totally ignored the premarket selloff, the first stage... Did not look at the premarket action...
Thank you! Thanks for the bargain advice! There is Temple steet and Women's steet in Monkok. I can feel lots of young energy while walking at Monkok area. Lots of young kids! Also, tons of street food! I like The Langham hotel Monkok near by. The shops in in the building are all nice and affordable. I like "I.T." they carry some unique contemporary designer brands. And the little "i.t." is cool for younger custemers. The energy in Monkok is very different with TST. More tourists carry designer labels in TST boosting HongKong economy North point makes the best Eggette! Happy trading next week!
Hmmm... you must. There really is no "premarket" for YM and ES. 24x5. You must see them as such. 24x5. What happened in Asia, then Europe, is a prelude to what's to come in the USA. You don't need to deal with the "gap" anomaly. Observe the runs and count the waves and 2-stage runs.