Was this a T or a bearish T? That is the question. This market is having a hard time digesting the news from the Middle East and the financial crisis in Dubai. The most troubling aspect of this news is the efforts of the governments involved to censure the news. Nothing good will come of this. "By the pricking of my thumbs, something wicked this way comes."
By all aspects, all T's have expired and I am looking for a level to short the market. I will look for a signal from the trend indicator chart below. The oscillator turns positive in an up move and it turns negative in a down move. The horizontal lines are drawn at one (1) standard deviation of the oscillator. If the indicator moves above one (1) standard deviation, I will look to short the market.
The price of the DIA is trading right on support. It seems to me that if this support is broken the price is in for a fall. If this reaction does occur, the next center post will be easily identified and we will be prepared for the next bull move.
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8 comments:
So what did you decide, Dave after today's action?
Would love to see this hold overall up from last Friday's low into this Fri.
Cal
DC -- former blogger here :) -- if the market continues up, Friday may be a swing top, the unemployement report being a typical trend reversal day. Other factors would fit with this picture.
Now think if today didn't make a top of sorts it will be in by tomorrow.
A Fri top would be too cute.
TWT
Cal
Seems like i'm still in the habit of giving my opinions. If there is no new high today, I am very confident that we just hit a swing top. It is a recurring pattern.
George is back, cool!
Slight adjustment to my opinion: i'm pretty sure today was a swing high, and i did act on it. we will see...
There was a new T that formed and it left me confused for a moment. I decided to go long the market after the new center post formed. I became distracted with other pressing business matters that demanded my attention. I never executed the long position nor did I get a chance to post to my blog. My decision was to wait till the T expired and then establish a short position.
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