Jeff, you confused me. I'm trying to look into OJ's call on CMGI to guess why he called. I probably see a formation of a rising three in candle stick. Notice also the rising three right after the that rise, and sure enough, there was another surge from 62-1/2 to 63-11/16. There may be a possibility of conversion of the MACD histogram, and the moving average line cross the signal line. This MACD, though showed the reversal from convergence to divergence on the second move, was not too clear, and may considered to be a fake move. As for the P&F, the bottom was 62 so the chance of loss is not as bad, and we may just take a chance on an ultra short-term positive signal ...
As for the spx as you mentioned, by the time OJ called, it was somewhere between 1416 and 1418, and the support by then was the low of the day, which was 1415.
May be I'm over-analyzing it, but, oh well, just a thought. I'm not trading so far, since I'm a little lazy and feeling a little negative because both Dow and Naz have broken their hourly sell signals. In this market like today, one got to be quick and decisive like OJ to to something about it.
pooh |
