SPY Daily + Weekly chart

Discussion in 'Technical Analysis' started by pak, May 7, 2009.

  1. pak


    Just had to ask:

    I cant remember seeing a daily chart in anything ( like the spy) that stays overbought for 2-3 weeks with an ADX that goes nowhere ( just turned up with low number a few days ago).

    Does this picture tell us anything? I have no idea how to read this…

    And then u see the weekly and that looks like the classic sell pic..yet keeps going higher?

    Any general comments ?

    Thanks :)
  2. I don't use those indicators, but I'd just say never sell until you get a clear signal, unless you feel like running in front of a freight train.
  3. pak


    Does this mean its going higher?
  4. ammo


    switch to monthly and it makes even less sense,you have to tweak all indicators to make em work,which leads to painting it to agree with your position,with that in mind u should have 2 or 3 confirming the same direction
  5. I don't pretend to know.

    All I'm saying is that, for example, some of the best money managers in the world during the 1990s and early 2000s lost their money shorting tech stocks when they were too high, and went out of business (Soros) before the bubble burst (and of course they were right in shorting them, just not at the right time).

    It doesn't mean stocks will collapse again, I'm just saying to trade with the trend or not trade at all until you have good reason the trend changes.

    Basically, don't go in blindfolded. Good luck.