I wrote this last week-end at Lee's site -
and I feel like giving myself some kudos -g-
fwiw - re the 16th high, max pain, market direction -
I am attaching a chart that Merlin sent Friday morning - he hasn't been so good
the
past few weeks, but, hey, who has? -g-
Anyway, if the market played out as this chart shows, it would show a nominal
move
up for the high on Tuesday and then down to end the week unchanged. Very
often, we
see max pain hit the Wed
before the week of max pain.
' - max pain friday close
msft - 47.5/50, 47.85
spx - 925, 894
qqq - 23/25, 22.85
mmm - 125/122
----------------------------------- -------
Looking at the above mentioned stocks, I observe the following -
mmm - hit 125+ on Wed morning.
Now, take a look at the daily chart. Is that a true 3 black crows? Even if it is, it
could still meet max pain next Wed without negating the crows.
Take a look at the p&f chart in every time frame -
from the .50 box to the 3 box frame. MMM is sitting right around support
(117-118). If it breaks, it is a big djia mover.
stockcharts.com
SC.web?c=mmm,uu[h,a]daclyyay[pb50!b200!b20][vc60][
iLl14!La12,26,9!Li5,5!Lp14,3,3!Lh10 ,10]&pref=G
stockcharts.com nf.asp?S=MMM&Y=U&B=1&N=A&T=on
----------------------------------- --
msft - hit max pain Wed morning. Of course, it can do it again next week, with
NO PROBLEM. MSFT is sitting right at support on the P&F chart and looks like it is
forming a triangle. It could stay anywhere between where it is and 50 and meet
max pain. If it breaks support - well, you know which indices it affects.
stockcharts.com
SC.web?c=Msft,uu[h,a]daclyyay[pb50!b200!b20][vc60][
iLl14!La12,26,9!Li5,5!Lp14,3,3!Lh10 ,10]&pref=G
stockcharts.com nf.asp?S=MSFT&Y=U&B=.75&N=A&T=on
----------------------------------- -------
SPX - guess where it hit Wed morning?
It's a no-no on a 10 box chart if it prints 870 but the BSL on the 5 box chart is
860.
stockcharts.com nf.asp?S=$SPX&Y=U&B=10&N=A&T=on
stockcharts.com nf.asp?S=$SPX&Y=U&B=5&N=A&T=on
----------------------------------- -------
qqq - couldn't even get to 24.50.
P&F chart looks very weak. That low print of 21.50 is telling me something -
stockcharts.com nf.asp?S=QQQ&Y=U&B=.5&N=A&T=on
----------------------------------- -------
Don't forget, next week is not only op ex week, but I believe Friday is triple
witching also. I could be wrong on that - |
