Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Tuesday, October 6, 2009

Some update

Just to continue on the I'm no Genius, again I did puke up my longs in the morning, Cause I wasn't buying it. Umn, Though I talked about some kind of correction and got it today, I talked about it yesterday too. So, I mentioned the downtrend/ Buy the Bullflag. Trade of last resort on that breakout. Shown Above. It is having a hard time holding above that. And... Let me say that Guy Adami officially called an end to 'Debby Downer' I'll also suggest that there was a ton of excitement today, and it was offical "you can't be short"... Bla Bla Bla(all that means is we start looking for 'it' AKA the end of the swing. Let me also suggest that again, those that jumped in short on the downswing from last week are just taking pain, for not recognizing the swing. That white line represents the last point "They Panicked at".

Simple little Bump and go here.
So here this doesn't quite look like a Flag, You can say it looks like a Pole and a Pennant(TKS T-LO) Let us say that the most likely resolution if for the Pennant would be for it to resolve UP. Into the possible Reversal.(that is all my opinion)

But lookie here, we have that nice breakout. and you have a nice horizontal to watch, for the reversal.


Tony said...

I suppose if you caught the uptrend the last two days, then great, but now we have made a lower high today and the two horizontal lines should act as resistance and support. Trades should wait for a breakout above the white line or a breakdown below the green line. Yes, the odds are for the pennant of flag to breakout UP, but who really knows. The high percentage would need to wait at this point.

Also, looking on the daily, is there a chance we have that we had an a-b-c correction like we had in July? If so, this should break through he white line resistance this week.

Eric said...

That Pennant breakout... well hasn't been formed yet, but seems unlikely to make a new swing high.

as I look at it, "So far" though gold is making new highs. The dollar is not making new 6 month lows.

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