The above chart illustrates the Larger T's that are in play and the Olive Green T is the same T that I illustrated in my last post on my "Not quite ready to lay out a short" post. From a longer perspective you can see the larger T developing over the smaller olive T by comparing the two charts. The above chart is as of the close Thursday 2/11/10 and shows the olive green T from the chart in my previous post. The chart below is an updated chart of the above.
The chart above clearly shows the formation of a new large T that is the primary force in the current uptrend. This chart is from the close on Friday 2/12/10. I was tempted to take out a short position at the expiration of the smaller T but I was not convinced we were still in a downtrend and then the larger T came into focus obviation any short play.
The above chart as of the close Friday 2/12/10 is a clear buy signal for the DIA indicating a strong uptrend that will last through Friday 2/19/10 and expire sometime Monday 2/22/10. I bought the DIA on the close last Friday: Bot DIA @ 101.27
This is another look at the new T this one indicating a bull move into the late morning of next Monday. I put on the following long position this morning after the opening:
Bot BGU @ 48.31
Sold Short BGZ @ 17.97
I never put a market but order in on the opening because prices are manipulated the most at the opening. I usually wait for 15 to 30 minutes and look for a good entry point.
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