The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at toddstrade@gmail.com
I am always open to questions, comments, or suggestions on how to improve this blog.


Thursday, May 14, 2009

thurs. 05_14

Messy and confusing behavior should be expected during OpEx week, but there are still trade-able moves.
The move down in SPY from the highs have consolidated most of the afternoon yesterday and the beginning of the morning today, giving us a somewhat rounding pattern:
The 5-min chart displays things a bit clearer, where we have a sideways consolidation. Price spent most of the time below the mid-range of this channel yesterday, whereas this morning that range was tested, though very briefly. Things look kinda weak for now. It looked as though we would get a healthy close and get a 20- & 50-EMA crossover back to bullish orientation, but things weakened late in the day after testing the lows from Tuesday.The SPY was choppy, but if you look around for strength there's bound to be something that stands out. Take MOS for instance; if you missed the initial move AND the break to long-term resistance (see the Daily chart posted in my previous post), you could still have stalked the Base& Break setup for a run higher. Keep in mind, long-term resistance areas can get awfully choppy, being that it's a likely place for all sorts of stop-loss and buy orders, short entries, etc., being triggered. Well, the week is nearly done and the SPY so far has painted a inside bar/harami candle pattern. Provided we don't rally 3% this is what we'll be left with. Speaking of a harami candle pattern, AAPL looks to have had a healthy pullback and finished today with an inside harami candle pattern, looking for confirmation through a close above the past two days, coinciding with a recovery of the 20-EMA.

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