M.
<The problem is no one has a clue which way the market is going>
I agree, it often appears this way.
However, the following of daily charts and indicators is to me akin to sailing a ship perhaps by the stars. The point is
you may not know exactly where you are but at least you're going in the right direction.
Right now, frankly, the daily charts for the $compx and $dji
have me worried about further upside action at least short
term (maybe couple weeks). Using stochastics, ADX, and trendlines, it appears to me that both averages are heading or are in danger of heading south for the forseeable future.
ADX and Stochastic lines are all heading in the wrong direction. The $compx trendline has been broken and should
test fib. retracement levels. The $dji trendline was already
adjusted from a steep incline 8/1-8/14 to a noticeably lesser
angle 8/16-9/6. It now appears in danger of breaking to the downside. From the look of both daily charts, I would say that 9/1 was the top in the $compx most recent uptrend and
9/6 the likely top in the $dji current uptrend.
Disclaimer - This is only IMO. I admittedly discount all
fundamental considerations (Election year, VIX, interest rates, yada yada, everything). I only consider the charts
themselves and position myself in the direction of the current trend. Currently I am cash and short. I make no prediction as to the duration of the current situation but when stochastics, adx and trendlines reverse to the upside,
so will I.
Good trading,
Eichler
P.S. I use I.Q. Charts... primitive perhaps compared to the
cool stuff alot of you use, but it gets the job done.
BTW...Did I misread in the last couple days Beara calling
for down move? That guy in uncanny predicting tops & bottoms! |
