the top is in

Discussion in 'Trading' started by remoteControl, Jan 30, 2021.

  1. treeman

    treeman

    H&s dating back to the 9th.
     
    #141     Feb 18, 2021
  2. SunTrader

    SunTrader

    Are you talking 3200 eMini?

    If so from the wave count I have seems a bit on the optimistic side and then some because I see currently 3862-3857 level as potential wave c bottom. And if doesn't stop there, 3825-3816 area likely the maximum. Of course more bars on the chart will help to pinpoint, revise or rule out completely.

    SPX EW abc.png
     
    #142     Feb 18, 2021
  3. treeman

    treeman

    A has not been reached. Not even close. I look at daily sticks for those labels. Again, that’s assuming we drop from here. Which isn’t a done deal. I’m just hedged that way, and still long.

    ABC- wave it might be as shallow as 3850. If it rallies through 4060, game on buy and don’t look back. But it could be as low as 3200. We will see. 2nd wave pullback. Maybe 3600. I’ll have to see how it unfolds. May take a few weeks still. I’d like to see a real 2nd wave pullback. Which hasn’t happened yet.

    all spx. I trade all the indices. I expect a mother of a 3rd wave taking us into 2022. Given that, I’m sure you can see I’m not looking at micro structures. Even me posting the 30min vix... way too short time frame for me. It’s difficult for me to ignore those bumps though. And I’m waiting for a second wave.
     
    Last edited: Feb 18, 2021
    #143     Feb 18, 2021
  4. SunTrader

    SunTrader

    Ok but then you mentioned that 5 minute pattern so that why I took a look at a 5 minute chart???

    Tomorrow's another day.
     
    #144     Feb 18, 2021
  5. treeman

    treeman

    Ahh.. just a topping pattern noticed. Also note it’s 5ish trading days later. Tops don’t flip on a dime like everyone thinks.

    here’s the read on the scathe- expect a drop and a kickback to the top of the scathe. Both of roughly equal size(2/17 and then the overnight for the top). It’s a distribution formation. With lower highs and lower lows, within a range (with a spring top just before the scathe). Supply has been coming in. Thats all. Nothing really special about it. *if I’m right, machines are dumping es. I just noticed it on the 5 min. Atr climbing isn’t insignificant either. I call that volatility. And we know what happens when that heats up. It looks like distribution to me. 3882 looms to be the breakpoint. I’m holding 3845 to lean in further.

    I also called out the rising vix on the 30 min. But if it climbs to 30 or more, that’s going to be visible on the daily sticks.

    Because I’m looking for a big consolidation, I’m looking for points where it begins. I could be early(still long though). Or, as I wrote, if spx breaks 4060 without a deep pullback, I’m levering way the back up. Said another way- I’m hawking the market right now. Think second wave from March low.
     
    Last edited: Feb 18, 2021
    #145     Feb 18, 2021
  6. KCalhoun

    KCalhoun

    The down and up churn we've seen the last two days during a minor downtrend often leads to a drop. It's been an interesting pattern to see morning selling then afternoon recovery, the bulls are still putting up a good fight.

    cannabis stocks were weak today with the big drop in tlry; weakness in tech with strength in soxs and sqqq, and importantly small cap weakness with strength in tza
     
    #146     Feb 18, 2021
  7. Overnight

    Overnight

    That is the pattern you will see most of the time in a bull market.

    A drop through the morning. Sometimes it will bottom at 10:30AM ET, like it did today, AGAIN, sometimes it will happen earlier or later. But then the inexorable rise into the afternoon.
     
    #147     Feb 18, 2021
    KCalhoun likes this.
  8. Dollardogs

    Dollardogs

    I've only been into trading for a year and I've been hearing this sentiment uttered all year long. What the hell's it normally like? Because I can read every book ever written on this, but all I've known first hand so far is a wildly volatile mostly uptrending market.
     
    #148     Feb 18, 2021
  9. Overnight

    Overnight

    What they are trying to prepare you for is the inevitable 1929-type crash, or 1987 that will totally mess up your long portfolio.

    It has yet to happen. And the more they keep harping on about it, the more likely it will be to occur. As they say.

     
    #149     Feb 18, 2021
  10. Dollardogs

    Dollardogs

    Don't know if this makes me stupid or smart, but I'm so expecting one of those flash crashes that I'm only day-trading right now. Everything seems so damn inflated to me that I'm trying not to hold any positions overnight for the time being. Really solid companies like NVDA have PE ratios of 100 right now. Even my rookie ass kinda understands what that forebodes.
     
    #150     Feb 18, 2021
    KCalhoun likes this.