I am intrigued by the notion of Sector Analysis used in accordance with watching the price action of relevant stocks, although I am close to completely inexperienced with the concept. I will be interested in observing the correlation if you continue with the process. --- Just wanted to post an update on KKD. It gained the 6% that we expected it would, and is now sitting right under the upper bound of the short-term channel that it's formed in the middle of the year's trend. If anyone is following the stock, I would advise adopting some conservative exit criteria if it looks like we encounter hard resistance at $26.00. No point holding a stock while it bounces around in such a gradually inclined channel when there's so many fish in the sea imo.
TSLA is more or less staying withing the trend channel drawn a few posts back. There were posts of massive panic and the end of the world with weaker than expected earnings, but price is simply doing what it is doing. When and if it weakens we'll know as we have a reference of it already being weaker as the trend channel is drifting down. As time goes on and perhaps market picks a direction, TSLA might do the same. As with the market it seems to be taking a breather. This sure is a heavy drop but exit out of the channel will alert us to further weakness or the seriousness of it. Gringo
JNK might turn into a nice short but for now the 40.4 level has not budged. Once that happens we might get accused of being too cool on the short side. Gringo
I don't have any personal interest in this stock currently, but my father is holding this and I made him a chart earlier today. Figured I might as well share. I don't have a recommendation to buy or sell here, but I suppose if the short-term supply is overpowered, this could probably be scalped for a quick 1-2% gain if that's your thing. It has enough liquidity to get quite a bit of capital in there at a moment's notice without any adverse effects.
EOD update for BTU. The drama continues, and I've become a little interested in seeing how this plays out. The prospect of capturing a few % off a re-test of the breakout attempt and subsequent high is beginning to look slightly more appealing, but I'm far from making any commitments at this time. We'll stay tuned. Also, I took a look at the yearly just for fun, and it turns out that this month's low at $16.80 and subsequent rise was the first retracement following the break of a 2.5 year downtrend. There's actually a lot more to talk about if we're taking longer time-frames into account. Perhaps I'll get into it on the chance that we see a successful breakout through the upside of the current channel in order to explain the context to those who are interested.
I would advise you to read DbPhoenix's "Son of If One can see a straight line" thread. It's as simple as it's going to get. I am more of a practitioner who's incorporating some new things from that thread into my trading. Although I post comments here, the entire logical reasoning behind the theory is not as detailed. Most new threads by Db, should get you moving in the right direction. A lot of it is dependent on one's plan. The plan is based on one's preference and risk tolerance. For all this, first you'll have to do some reading about what supply and demand is and what can be done about judging the dynamic strength that it has in real time. Once you get that knowledge my comments will hopefully start making some sense. The idea is to identify crucial points and let the person's own plan take over from there. This question that you have asked me has identified a missing link in your trading. What to do when support breaks? That's a very valid question and once you have answered it you'll be so much better as a trader. I don't know your background so you might already be a good trader, and I may just be assuming the incorrect. In that case please accept my apologies. All the best. Gringo
Thanks for your answer. So essentially the method/theory, as I understand it, does not say what the implications of a break are on its previous assumptions. That is fine. My comments are not meant in spirit of positive intellectual discussion. I just wanted to know what the method does or does not do after a break takes place. In addition, I thought an anticipatory component could help it. I liked your posts, that is why I have responded to them. Thanks, and best to you as well.
I guess I just don't understand why you're asking these questions when you've been pointed towards their answers several times. Gringo has been helpful towards you, and instead of spoon-feeding you the answers like you keep requesting, he is trying to help aid your personal growth as a trader so that you can achieve what you actually want. We know that getting the answer to your question isn't going to help you, but what will help you is the process of taking ownership and developing a proficient enough understanding of market behavior to be able to answer the question yourself. I honestly would like to see you grow and succeed as well; I'm not trying to give you a hard time. Also, I can give you a valid answer to your question, but in response, can you please explain what you are going to do with it? How will it help you if you are unwilling to put in the effort to study, understand, and test the concept and the related materials? This is the part I don't understand. If the demand line fails and price breaks 40.4 decisively, it will mean that a serious shift of momentum between buyers and sellers is potentially taking place. A confirmation of this change would be a subsequent failure for buyers to make a higher high than 40.6. In addition, price falling through 40.2, and especially 40 could also serve as indicators of the strength of the down-move, if it occurs in the first place. This is what the break of the line could indicate, and as to what one can do with it, as Gringo has said quite nicely, no one can provide a specific answer for you. One doesn't exist. What one can do with weakness in price is to short it. However, at any of the points I've listed above, as well as many others, a variety of things could take place that would change the entire landscape of the current price action, along with all of the possibilities of what might happen next. Unless one understand all of these circumstances, is comfortable enough to interpret them in real time, and has tested specific parameters for trading all of those conditions, they're really not doing much more than playing a guessing game. None of this information can be used to predict the market, which is something I'm not sure you understand. We take all of the information that the market has presently given us, anticipate the possibilities, and... that's it. Once you understand what is happening, all that's left is just to do what the market tells you. Your questions themselves demonstrate that you've yet to understand this fully. There is no answer to, "What does the line break mean and what can do with it?" Price could drop straight down through the line, and fifty seconds later it could hit 41. The price action is constantly changing; a static answer like the one you're asking for doesn't exist, and even if we take a stab at providing what you're asking for, what good is it?
There is. It is in some sentences of your post above - after one removes the other stuff/etc. Thanks for the parts that contain answers. Gringo: In my response to you there is a NOT that should not be in there. It was a typo. I assume you have read it as if the NOT was not there.