2006 was a good year, 2007 will be even better. I am going to post my daily trades here on ET. I will post entries along with risk management procedures. Each day I will take what ever opportunities the market is offering. Opportunities served up fresh daily. Man I am excited about 2007, up, down, sideways I can make money. My goal is to average 40 points a day in the Dow Mini Contract. I like to scale in and scale out of trades. Now lets get our minds off of top picking and focus on what the market is telling us, earnings season is knocking at the door, it should provide us with many opportunities as volatility increases.
Its a new year, I want to be more flexiable, I must be if I am going to reach my daily goal of 40 points. Granted wallstreets main goal is a higher market, the most natural trade is the long trade.
This H&S intraday top pattern looked like it was showing some promise for the bears but the midnight rally gang foiled the party late last night. Bears just cant get a leg up these days. Most pull back have been around .30% and they get gobbled up like its the buy of the century. Guess the market is trying to tell us something.
Here is a weekly chart of the Cash Dow showing a weekly divergence using a 5 period RSI. This does not mean its going to correct. The RSI could break above the trendline and go back to 80+ all we can do is monitor it. I had to go back to 1996 to find another divergence like this one.