[Noob Post] Can we consider Dow's head and shoulder?

[bchung3000]

Right bchung, Cemex went back down to restest support and bounced off. It is at same price I went long yesterday now. Im still in and expecting it to spike up into the close or tomorrow. The malfunction of H&S pattern for the index, is kind of the same for H&S pattern for Dow. Glad you re making money, which is the objective of this game.

Hi dpinpon. Looks like there is a pretty bearish divergence with the MACD. Also with the Mexico index. I think CEMEX is becoming rather choppy to trade. :-0

I tried posting a chart of the DJIA but was unsuccessful even after uploading the image to this site. There is a divergence on the head and shoulders between DJIA and DJ utilities. Many trading books show this as a sign of lower prices ahead. This is a very classical sign which proceeded the 1974 bear market.

I was able to upload it to my blog at:
http://bj139-trading101.blogspot.com/2010/07/here-is-chart-of-djia-with-dj-utilities.html

Hi BJ139

Was it this divergence (one at the left shoulder and one on the head) that you were refering to? vs the dj utilities.

Here is my long term Dow chart with my favorite indicators below it. You can put the same indicators on any time frame and they work very well. I have a modified stochastic with the MA's set at 34, 13 and 8, and a fractal indicator on top of that. It's not perfect but it's very good I think.

I only trade forex and the dow is the only stock index I follow.

Hi JahDave

Looks like the indicator you mentioned is pretty strong. May I know what inspired you to combine stochastic and MA together as one?


I am starting to think that the head and shoulder is a failure. 👎

 

[dpinpon]

Yes bchung, we have bearish divergences in the long term for IPC, but is making higher highs and higher lows at present, if US markets go up, surely IPC will follow thru. Regarding to Cemex, thats exactly what I posted befor, buy into weaknes and sell into resistance, that had to be buying between 2-2.30 pm and sell at the opening next day. Had 2 succesful tradings out of 3. On thursday left cemex and went full long on Autlan, is a miner company, biggest ferromanganese alloy producer in Mex.
http://www.stock-research.net/_private/nasdaqchart.asp?M=MX&CODI=AUT.MX
I took it for 27.5, aproaching to short term resis 28.5-29, hopefully bust through and may reach target up at 32-33.
Comments wellcome.

 

[jonnyy40]

What about the big one starting from 1998?
www.theterroristswhodestroyedthemarkets.com

 

[bj139]

Hi dpinpon. Looks like there is a pretty bearish divergence with the MACD. Also with the Mexico index. I think CEMEX is becoming rather choppy to trade. :-0



Hi BJ139

Was it this divergence (one at the left shoulder and one on the head) that you were refering to? vs the dj utilities.



Hi JahDave

Looks like the indicator you mentioned is pretty strong. May I know what inspired you to combine stochastic and MA together as one?


I am starting to think that the head and shoulder is a failure. 👎

Hi BJ139
Was it this divergence (one at the left shoulder and one on the head) that you were refering to? vs the dj utilities.

Yes, that is the divergence.

 

[bj139]

What about the big one starting from 1998?
www.theterroristswhodestroyedthemarkets.com

There is only one page describing a conspiracy to destroy the markets. I have thought this for some time and I would like to learn more. I thought so since George Soros nearly destroyed the British pound and made a billion dollars. I hope I am not too old to work in the labor camps.🙁

 

[dpinpon]

Too slow for the day, cant take resistance out so out of the trade to break even.

 

[dpinpon]

Sorry for the question, is there a thread on city, about res and supports levels, trendings, fundamentals, blabbing, news, etc. Looks explosive to the upside, im long in it. Thanks.

 

[bchung3000]

Hi everyone im back!
Comp crashed few days back...missed the bullish days zzz...

Looks like the h&S is really a crappy failure, it's gonna go sideway for these few weeks perhaps, providing it not break the resistance level =D

anyway for day trading terms, it's been quite quiet these few days too, glad that i did not get in for day trading haha.

 

[mechanicaldaytrader]

Summer 2010 (August) The Dow Jones Cash Index has completed a perfect Head & Shoulders pattern; check out the chart analysis that is attached. Institutions are net short as of the close of August 9th and the open of August 10th.

MechanicalTrader

 

[mechanicaldaytrader]

Interesting read about the Dow....if US economic policy reverses (due to elections most likely) some of this long term bad karma may be avoided...near future "pain" in equities is in the cards, imo. Get ready for Dow 6000 comrades...it may not be a straight down plunge, likely violent peaks that create lower lows, as per recent daily bars demonstrate.

"The Hindenburg Omen Has Arrived"
http://www.zerohedge.com/article/hindenburg-omen-here

MechanicalTrader