Wednesday, August 20, 2008

Watch the dead cat bounce

The market continued showing weakness and broke the lower trend line. At this point we have our final confirmation for the continuation of our bear trend. There was little to no support on the way down and we finally hit the low of the day 0.16 cents of my target where we saw some support.

As mentioned we have another leg to go on the downside to possibly hit 1252 where we should see quite a bit of support. While our overall trend is downwards we want to make sure we don't get caught on the wrong side of the trade even if its just short term as we entered our oversold condition on the 60min chart yesterday morning.

We should see further weakness in the market with failed attempts at a rally. We are nearing key support only 10 pts down from yesterdays low where we should see quite a bit of support.

Time and Price
1st high 1274
2nd high 1281-1282
1st low 1262
2nd low 1250-1252 - here we should see a bit more of a rally if this indeed will be hit today

Other Market Moves
Why doesn't someone kick me. AMR down 11% yesterday - guess I should have entered a bit quicker here after my Monday call to short. Oh well, the market offers many opportunities on a daily basis - there will be more.


  1. What are you using as an oversold indicator?

  2. Bonkers! Would you answer me already?

  3. lol ... using RSI, MACD, slow stoch, momentum. On top of that I do comparisions between those indicators on daily, 60 min, 30 min and 15 min charts.