justtradin
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selling more wfc aug 25 puts for 1.89 acb 1.19.
JT
JT
down on my july 145-150 gs calls
My july 55 rimms puts are up to 7.20 from 1.90 a week ago
This is just my thinking, not advice. If you want to make money do the opposite.
I'm looking for a return to SP1150 starting near 7/2/10. If I see any strength by the close I may buy some TNA or BGU. An extended trendline from the January highs through the May lows may provide support. Also, the McClellan Summation Index is showing positive divergence indicating more stocks are advancing than declining relative to the June lows.![]()
down on my july 145-150 gs calls
My july 55 rimms puts are up to 7.20 from 1.90 a week ago
Hi BJ139
I am actually thinking about the combination of head and shoulder pattern together with elliot wave principle..if starting from 24/04/2010, point 1 at 08/06/2010 and point 2 at 21/06/2010..it doesnt look good to start any long position..
anyway BJ139 could you kindly elaborate a little bit on divergence? i've never got that right..not even once
Thanks
Brian
Thanks for the info BJ139
I guess i have been using the same method for day trading (divergence), with the stochastic. Just that i didnt realise that it's called divergence. Is there Convergence then?
I think currently Day Trading would be a better method until the big downtrend is confirmed. Would you agree?
I haven't heard of convergence in technical analysis except in a triangle the two trendlines converge. Divergence means a trendline drawn through price lows or highs are at a different angle than with trendlines drawn through the indicator lows or highs.
I posted mysome of my daytrading experiences on my blog at:
http://bj139-trading101.blogspot.com/2010/07/violating-trading-rules.html
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Im expecting a bounce from here, so went long half an hour before into the close. Good luck and nice weekend to all.
Totally agree bchung, ive done this only the 2 past trading sessions, before those days were too risky. On thursday bought cemex stock at 2.30 pm (that is 3.30 pm for you) and sold it next day in the first 15 min of trading session for close to a 1% in profit, thats not much but Im kind a kamikase trader and went full long. On friday I bought same stock at 2.15 pm, even though market on monday is open in Mexico, volume will be real light so im planning to hold it over the long holiday weekend. Lets see if can sell it at the opening bell or hold or even scalp on tuesday.
As for a bounce from here concern, I see big divergence in MACD, loosing steam when getting close to the psicological 1000 mark in S&P 500, right at the 38.2% Fibbo, support on weekly 100 sma, possible daily measure movement from top 1130-1080 to bottom 1080-1020 and a terrible down day streak. But, im pretty aware of the hefty H&S pattern we just confirmed this week and could get swamped in a blink of an eye, so my stop should be tight.
Hi bchung3000,Rumor says target for the decline can go all the way down to 900 for dowjone and 400 for s&p according to elliot waves the megawave. Not sure if it's going to happen but what i think is it will go back to the neckline level, 1040 for s&p, making a 2nd chance to sell then continue the bearish movement.
Would folks agree with me?![]()
Hi bchung3000,
You appear to be trying to predict the future which has proved to be a tough gig for traders in the past. That said, you may well be correct and, if you're prepared to back your opinion with real money, you could hit a home run and clean up big time. Alternatively, you could lose a little - or a lot - depending upon your risk management strategies. Either way, you're gambling, IMO.
The trouble with technical analysis is that so many traders (me included) look at charts and see patterns like H&S forming and expect price to complete the pattern and do what it 'should' do. Projecting one's own views onto the market in this way is very easy to do - it's almost natural. However, as I know to my cost, it tends not to be profitable! So, in answer to your question - the best traders that I know often have an opinion about where the market's headed in the coming days and weeks, but, under no circumstances would they let that influence their trading. Furthermore, if they think it's likely to fall, it wouldn't stop them from buying the market if their set ups and entry triggers indicate a long trade. Personally, I'm not good at doing this. All too often I allow my opinions to dictate my actions with inevitable results. Consequently, I never spend any time trying to figure out where the market is likely to go.
Tim.