Regular Readers know, I have Much respect for Trading with TK. Mostly because he tells you what he thinks, and he isn't a BULLSHIT HEDGER, technision..... Yes, it's all about probabilities. But you have to make a decision at one point.
Tonight, He was worked up because we had broken the resistance yesterday(the line in white) and we didn't manage to break it today. Of course I'm concerned, and all rallies come to an end, as this one is..... But, Look at that Green arrow.... Is that not a "Breakout"...... Followed by that purple arrow, which shows a Pull back.. followed by the start of a "go"... and yes, it hit resistance and bounced... Of course it did, that is what resistance does.... But if you remember My rule of 3's when you attack resistance, you usually bounce off of it twice then that third time go through.
Todays picture is a nice Consolidation, base build for a move higher.... Who knows if it's sustainable to a new high... but that is the chart... no bullshit.
Wednesday, August 20, 2008
Consolidation of the upmove/ Trading with TK
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2 comments:
I'm glad you commented on TK's video, because I thought the same thing as you. What is the big beef with hitting resistance?
I think TK got freaked because some of his individual stock picks got hit hard, mainly because the small caps had such a nice run and he has kept buying into the small parabolic run up, and then got hurt a bit with the pullback.
In his videos, he has also said that a healthy uptrend has to consolidate, so I was not clear on why he was so glum last night.
Yes, some support got taken out, but I think its too early to panic. Of course, you and TK have been doing this longer and have more attuned insight...
Morning Tony,
Watch the new uptrend line, in xlf and the indexes. Maybe I'll do some charts. TK responds emotionally some times...Last time at this point he went short, we rallied, he got killed. Then we went up he went long We topped,Killed again. One can also read it like he is saying "my spider-sense is going off".
Seems like you are realizing how badly you can get killed chasing trends.
and Yes, the overall trend is in danger... but We all new that it was a ticking time bomb. But... I bet if we retest that downside resistance again... we will go through it.
Futures are trying to moderate. Futures have been so wrong for weeks, I keep hoping they will stop being so volatile, Seems stupid for them to be Up or Down 70 when the market only moved 40 yesterday.
You know, I always feel powerless in the first 30 minutes, getting an order filled, or getting in or out of something... is just a nightmare. Sometimes, it's best to just let the dust settle for a little bit... Unless you can see it's super grim, and it's best to run.
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