Monthly Archive: January 2010

Stocks oversold, but does it matter? 3

Stocks oversold, but does it matter?

Here are the last 20 trading days of the Dow in a 60-min chart. Source: prophet.net Note the upward divergence in the bottom RSI, indicating that each downward movement since the 22nd has been...

Old times 2

Old times

I’m away from my computer today, but here’s a film I really enjoy. Market Street, San Francisco, 1905: No Fed, an “inflexible” currency, no Homeland Security, no Consumer Products Safety Commission, no Department of...

Options sentiment update 0

Options sentiment update

The 5-day average equity put:call ratio is now right at the mean: Source: indexindicators.com – You can see that the 20-day average still has a long ways to go, which means that the 5-day...

Platinum breakdown 0

Platinum breakdown

Platinum followed through on its MACD sell signal with a probe through $1500 today ($1483 was the low on the active April contract): Source: futures-tradingcharts.com – I remain short PL and its nephew palladium....

Rally mode? 2

Rally mode?

We got our new low this morning, tested it at Fed time, then reversed strongly upwards. This could be the start of the much-anticipated countertrend rally. – I’m all hedged up, maybe even a...

Low in place? 0

Low in place?

We got our fifth wave down, then RSI turned up and we got a MACD buy signal on the 10-min bar: Source: prophet.net – I’m now fully hedged to defend my long-term options against...

Dow update 0

Dow update

This pattern played out nicely this afternoon (highlighting is the possible wave 4 as I saw it then). We’ll see if there’s any follow through tomorrow. Would be nice to see a clean final...

Pattern recognition 0

Pattern recognition

It can be a sign of mental instability, but also helps with trading. If this is a correction leading to new lows, the 10-min chart from Friday’s close might end up looking a lot...