Monday, October 4, 2010

Short trade progress

After the market mulling around on top waiting for the trend to change, I have had nothing much to post but to rather wait. Today we tested that dreaded 1132 support line. This is a key for us to break from a short prospective. Tonight I am going to post the 3 trade chart time-frames (daily,60,30) and see what is taking place. I put notes on the charts where I thought it was important to do so. Let take a look at the longest time-frame, the daily.

We continued on our bearish divergence and now CCI(20) is breaking 100. You really see the momentum building up in this chart for a trend change. Also, you can see we have plenty of room to go down for a longer-term trade. If everything works out correctly, CCI (20) will break -100 and I will exit before it breaks -100 again. I will use the 30/60 minute charts to exact the exit while the Daily chart gives me an idea of how much potential I have for profits. For more information on this CCI concept look to the right links on the Divergence trade of 3's, more specifically "Indicators with different time-frames" Here is the daily:

Below we see the 60 minute chart:

Below you have the 30 minute chart. We got a double whammy going on with the 20 Day Moving Average and the dreaded 1132 support area. I would be surprised if we break through this tomorrow, but I've seen crazier things. I'm expecting some kind of right shoulder to form here we another stab at the 1132 line. If broken, look for the 200/150 MA's then the gap to be filled bellow the MA's with a back test at the 1120~ish area then we head down with a strong wave 3/C wave to the Fibs, shown in the 60 minute chart.

~Good luck and Happy Hunting~


  1. Thanks very much for your analysis. I'll be checking back to learn more about how you will exit the short trade.

  2. Thanks Ray. I'm driving across the US the week of 10/9-18 and my internet access will be very limited. I hope I will post this in the main before I leave, but just a heads up.