Thursday, March 4, 2010

A bit of a decision now

Well market has a bit of a decision to make at the moment. Head and shoulder over head, triple bottom below. What will it be? I am still positioned short with stop moved above todays high. Even if we go lower here and break the tripple top range, look what happened the last time at 1092 ES, broke lower after some narrow back and forth just to give us an amazing reversal higher.

We have quite a few divergences, especially with some sectors making new annual highs or getting extremely close to qualify for a retest. EURUSD going lower after testing the upper trendline peaks from Feb 9th and 17th. So both could go lower here.

On the other hand, tick only got a -831 in today and that second LOD was made on lower volume. The bounce here was obvious - the question now becomes if its a bounce based on tripple bottom support to go higher? Or if we head lower. We have spent enough time to work off overbought conditions to give us room for a run towards 1130+ without pull back. Just on the flip side we can now absorb a strong sell off and still manage to keep 1110 as key support as we have enough buffer.

The more and more I say the more we can all see that it is extremely difficult to try to get a position for 20-30 points ....

1 comment:

  1. I took a profit today woot - finally. A whopping 3 pts. So frustrating, if I were to show you a chart of my trades, you would be kicking yourself as well. Most of them are horizontal lines with entry and stop at almost the same levels lol.

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