Okay, here is support for the theory that ES has topped and is heading lower now. I trade divergence. An example of the signal I trade is marked on the chart. It was a good short signal. If you look closely at the current stochastic you will see a slight shoulder. This takes the place of a lower high if it is defined well. This one is marginal, but it is there. This would signal the move down now and a strong one with the DT. A well defined shoulder or elbow is very powerful in my stochastic. Be interesting to see how it play out. Good topic for me anyway.
Heck no don't stop Vision'! Your posts are the stuff this website is all about. Very nice charts. Although I love the divergence as well so maybe I'm biased. Anyway, I look forward to your ongoing commentary as events unfold.
Question: I heard one of the big issues was the price of the yen since it could pull major dollars out of the U.S. mkts? Does anyone know if that is that still a concern?
There are still many unresolved issues that are negative for the U.S. Dollar. This includes large current account and budget deficits, weak business and consumer sentiment, deteriorating labor market and lack of a clear stimulus for the economy. Personally, I don't think overseas investors are enamoured with the USD anymore. Just look at interest rate differentials and this will give you a good idea of where the money will flow. Then you throw in the good feelings that Germany and France have about the US and all of the sudden the EURO or Swiss franc looks like a good bet. I'm not not really qualfied to answer your question about the YEN. The way their economy has been lately, I would stay clear of any long term investments in Japan. Better ask George Soros. I bet he's short the dollar.
Magna said very recently: http://www.elitetrader.com/vb/showthread.php?postid=293679#post293679 You said here you were "bowing out". You don't bow out gracefully, do you?
Interesting stuff. What does William O'Neil think? He's the IBD owner riight? I used to listen to him and Ryan. But not in the last decade. He doesn't think it's a double top? Great! That doesn't sway me in the least.
that this website is called elitetrader, and people here fancy themselves as traders, yet no one can come forward with a damn opinion of a major technical formation on the S&P index. Does anyone know anything here about trading?
As traders we trade what we see, right ? Not what we think, right ? Here's what I see: if not short from the double top already on SPY then perhaps on a break of the trend line. See chart. However, weekly looks good. See next chart.
Can't wait for the weekly to slow down. Will it be a weekly correction or hug test of the lows ? So far though, weekly's lookin' good.
it breaks. Hard for it not to look good with the 25% rally we've had. I'm watching that trendline as well.