....but RIMM pulled me back in. I took
RIMM off my watchlist a while ago, but still peek at it every now and again. The setup was a double bottom, with a strong momentum candle followed by a tight flag. Target was initially the 50% extension measured off of the W-bottom wave, but it was showing strength at that point (as was the rest of the market), so a target after that was the 100% extension. Not that you needed a
3/10 macd criteria for this setup, but the 3a criteria is still a good long condition, especially when the slow line is trending so solidly up.
QCOM was an unfortunate result for me. Entered long on the 3d condition, exited at what I thought might be a double-top (was uncertain of which way the market might turn at this point) so I exited. I had the opportunity to get back in long, but failed to re-enter. The Fib. levels marked here are measured off of two "seed waves", one which is highlighted on the 5-min chart, the other is indicated on the 15-min chart.
Here's a messy chart with a bunch of Fib. lines of the
SPY these past two days. The intention was to show a few things:
1- We sold off to and found support on a 50% extension confluence as measured off of the Previous Day Close (PDC) to the Open and the Previous Day High (PDH) to Low (PDL) range.
2- Price was capped to the upside with another confluence of 50% levels; 50% extensions of two momentum waves, the 50% retracement of the PDO to PDC, and the 50% retracement of the PDH to PDL. I mention these two 50% levels because yesterday happened to be a 2x day (day's range was at least 2x greater than the previous day as
explained in this document).
3- The 3/10 macd formed a V-bottom. What I have notice about this reading is that it's best to wait until at least the Slow Line and Fast Line cross before looking to enter long. You can visualize the macd forming a cup and handle pattern if that helps.
In comparison to the V-bottom macd pattern in
AMZN today, it's just safer to look for an entry when the Fast Line and Slow Line have crossed:
Another Chart I found interesting was
IWM and the number of Reverse & Regular Divergences we've seen these past two sessions.
FCX; has had the feel like people are anxious to jump aboard this one for "the bounce."
POT; though technically not a momentum divergence (yet), it to has had a similar feel like people are waiting to ride this for a bounce. Of interest is the inverted hammer candle today.
Looking at the Volume Profile of the past few days, watch areas of previous large volume levels, particularly those not yet tested (VPOC). Below we see some levels of potential Support/Resistance, I also marked the gap created on Wednesday last week. This perspective highlights the concept that price often tests areas where it previously sliced through.
Now look at how it translated onto a 5-min price chart with the same price levels highlighted:
Not labeled on the above charts is the overhead resistance level (in terms of the volume profile) between $116.90 - $117.15.
If you're able to stand the noise and focus on objectives, a z-day may also entail fading strength/weakness by perhaps using Bollinger Bands as a guide. While today's early morning range was very choppy between the highs and the Open, the lows of the day were put in near Friday's last hour low in the form of a Phoenix setup.
The first divergence of the day was a reverse divergence (higher TICK highs corresponding with lower price highs). The "Phoenix setup mentioned above was done on a TICK buy divergence, while the later afternoon test of the highs registered a TICK sell divergence.
After looking at the chart above I wanted to add in the Stevenson PTT for old time sake, because the cycles really jump out at you. Currently we're in an Inverted Cycle and it's a toss-up as to which will be achieved first; the breach of the CTL beginning a Regular Cycle down, or the Price & Time Target at the $116 level (read more about how these targets and triggers are obtained by reading the link above for Stevenson PTT.
Price has bounced from this level before, but the "pace" seems to be weakening.
A breakdown below $25 could send price back to test $21
The $104 area may be a good place to buy for a bounce, with this buy divergence building at this point.
Indicated on the chart below is the entry and exits taken on this trade (down arrow with small horizontal lines). The ellipses on the 3/10 oscillator highlight patterns to look for as entry potential. The first ellipse shows how the fast line falls under the slow line and corrects into it at the highs of the day, leading to a correction off of the trendline on a momentum divergence. 
Also highlighted on this chart is a bullish Wolfe Wave setup that occurred. Unfortunately, when I put my order in to go long price ran away from me. The buy divergence lent confidence to the entry, while vwap gave some confidence for the target line.
Price was unable to sustain the upper 50% of it's previous day's range today and sold off on heavier volume. These last two double down swings have registered divergences, and the highs seem to get tested more frequently than the lows have been lately.
Take note of the 3 most recent momentum pushes up creating a bearish divergence, while the most recent two momentum pushes down gave us a bullish hidden divergence, yada yada yada.
And finally today, the 1-min SPY with TICK (molestor). A couple divergences that could have been good for scalps or even intra-day swings. Nice job Richard!
The sell-off just barely filled the gap before turning around to close nearly at the open.
