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.


Monday, October 8, 2012

Mon. 10_08

Narrow range, sideways day to be expected on a bank holiday with the bond markets closed.
Price extended to a 25% projection outside of the overnight range, but otherwise remained inside that range.

A key for the above chart to define the horizontal lines and dots.  For further explanation, see this link:   



Advance/Decline and Up/Down volume remained bearish throughout the day

One trade is all I took.  Contemplated taking a short (indicated by the red down arrow at around 10:15am). Very lame exit on this long, as my target was $145.80 but I stuck with a Fib. projection exit and gave up on it instead of letting it go into the final hour.

The daily looks fairly weak at this point.  Since the new momentum low at the close of September a reaction has been pretty subdeud.

Not to mention what looks like weakness in other markets;
The DIA with an inverted roof pattern.  A break to the downside has a measured move of around the 50-day MA (red):

QQQ - Has a bit of Head&Shoulders pattern, currently at the 50-day SMA and neckline support

IWM - continues in a very narrow channel


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