Thursday, October 27, 2011


Geeze, was I out of wack yesterday, sigh, I think it started with the huge gap up. I was actually looking for it to go HIGHER, which is one of my favorite patterns, as you set up a "Trap Door", where you gap higher and then go HIGHER for three to five bars, it's a short pattern, especially if you run into a prior close, or prior resistance, etc etc.
Anyway, it DIDN'T, hahahahaha, took off straight south is what it did, totally caught me by surprise, sheeeeeet, I didn't even hedge any of my junkie long positions.
I'm only mentioning this because this did a REALLY cool little thing, they bottomed at their WEEKLY PIVOT's, they being both the IWM and the SPY. Adding to this was that they both came into their DAILY S1 "areas" as well, I mean, this was just a totally, like, very tight R/R LONG opportunity. That is, it was for any one that took it, it just so happens that I PERSONALLY know some one who DIDN'T, hahahahahaha, now, I wonder whoooooooo THAT could be??!!
Sooooo, I actually get interested on the next move, we get an explosion higher, and then start going sideways, IE, it's a "THRUST", with a consolidation, this is in the red box on the IWM, which is what I was concentrating on. Mind you, through this side ways consolidation the RSI on the bottom was going HIGHER, so I'm like all, COOL, this things going to set up an "Equal Move" higher, woooo hoooo, and, hahahahaha, as in, NOT!!!!!!!! It had an almost dead nuts target back up to the open of the day, as shown by the green lines, wad ever, I get stopped, I'm bummed, we go down and test the open, again, and then blast HIGHER, eventually hitting my target.
I was just, like, not with it Maaaannnnn, sigh, shit happens I guess. We had a pretty heavy volume sell off the last 15 minutes of the day, I don't know what that means, but generally speaking it's NOT good, we shall see when we open up.
"INDICATORS", basically, SUCK! However, on a weekly chart it's pretty obvious that they aren't to BAD at picking BOTTOMS, but they definitely can suck at trying to pick TOPS, as the markets can just go on, and on, and on, and..............................................

Looking at that bunch above, I'd say maybe the STOCHRSI is the best of a mediocre bunch, it keeps you out of more of the whip saws of the upper bunch if you use as a trigger the indicator crossing above the 30 level for buys, and under the 70 level for sells. Who knows, maybe with a little testing and tweaking some one could make it work pretty decently.

It's not super lousy on daily charts either, it's just that of course it DOESN'T work in strong uptrends.

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