Getting a nice sell-off following the completion of the Bat Pattern we were tracking yesterday. Shown below on the eminis… The downside path is clear. But, bulls will probably go for the obvious IH&S with what should be a decent bounce somewhere around 1495-1500. The dollar reached our 82.136-82.281 target from several days ago, and … continue reading →
Tag Archives: butterfly
Yesterday was a great example of the beauty of Harmonics. In conjunction with my RSI work and channel work, we were able to rack up 23 points on a day when the big picture is still fairly negative (remember Italy, the sequester, negative GDP, retailers’ horrid guidance?) By drawing important Fibonacci lines in the sand, … continue reading →
ORIGINAL POST: 6:00 AM SPX ended yesterday just below our 1497 trigger point at the neckline. I know the bulls would love to blow through this level and negate the H&S, but I think they’ve really got their work cut out for them, especially given the political mess in Italy and the looming US sequester. … continue reading →
ORIGINAL POST: 09:25 AM UPDATE: 09:30 AM SPX overshot our initial target by just a couple of points yesterday, reaching the channel 25% line at 1497.29 before getting the bounce I expected at 1499/1500. Note that SPX completed a Bat Pattern down to the .886 in the process (larger white pattern.) The .618 Fib of … continue reading →
The dollar index has cleared an important hurdle to higher prices. Note RSI has broken above and is back-testing the red channel on the daily chart. Of course, it’s not a back-test until it reverses and stays higher. The first key level to confirm a breakout are the Jan 4 80.995 high — at which … continue reading →
It was worth watching the SOTU last night just to see Boehner’s contortions, trying to scowl in a dignified, statesman-like way. Nothing much new in the speech or the response. More interesting was Mitch McConnell’s comment on CNBC last night that the sequester will go into effect. I don’t know any reputable economist who believes … continue reading →
Nice little intra-day sell-off again yesterday, culminating in a last minute positive close — another shake-and-bake by your friendly neighborhood market makers to separate you from your hard-earned money. Look for more of the same today. Today’s news is all about currencies. Draghi’s comments are successfully taking some of the bloom off euro’s today. The … continue reading →
The first of a two-part article on harmonics trading strategies. Part 1. January 28, 2013 Harmonics are a great source of information about the market, but they don’t tell you how or when to trade any more than do MACD crosses or breadth indicators. So, how do you use them? This discussion of the basic … continue reading →
First, a quick overview… The dollar got clobbered overnight, knocking it temporarily out of the white channel that’s guided it since Jan 11. But, interestingly, its RSI channel is doing just fine, thank you. The EURUSD continues to levitate, but still hasn’t broken the last important interim top put in on Feb 24. It is … continue reading →
ORIGINAL POST: The dollar is making a stand at the upper end of the target range I charted Friday, but hasn’t yet broken out of the steep falling channel. While there was a turn at the .618 Fib that would justify a .786 completion (a Gartley), the more obvious Point B was at the .382. … continue reading →