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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: sam_o who wrote (30211)	7/6/2001 3:14:24 PM
From: besttrader	Respond to of 37746

Ok. Here is the post with no password, but also with no chart attached. (Just use a daily S&P500 chart with MACD that has the red and blue crossover lines. Not a histogram). We've all heard that cliche, but it took me a long time to pay attention to it, and to profit from it. It's alot more fun to want what WE want the market to do, because then, it's all about ME...ME...ME. I also liked what "Z" (Zedor) posted awhile back (paraphrased): "Being a bull or a bear isn't a religion, or a political party that we join." We have to change with the market as best we can, or we won't survive. MOST of the time, the market requires alot of patience. Waiting for the market to "tip its hand." As far as I'm concerned, the market has just done that. We've been fooling around in this triangle from June 15th - July 5th, and today, we've taken it out to the downside. We've also taken out other key support levels. The market has gotten stopped at key resistance levels, and it has resolved the trading range to the downside. "The market WANTS to go down." That can change as soon as this afternoon, but until I get some indication that the market wants to do something else, I'm gonna "want what the market wants," and follow the program. In the chart above, look at what the MACD is doing. It tried to jump the signal line, and it has now turned down. What has price done? Price has gotten refused at the key resistance levels that we've all been discussing, and it has also broken key support. Look at the MACD in early March, where price broke down from a triangle, similar to what we have today. It "looked" like we had a "W" bottom in place. Market was "oversold." Look at the drop that ensued, from OVERSOLD levels. Look at the MACD in early January. Back then, I mentioned that the MACD had found support TWICE on the retest of the signal line. Off we went to the upside. Look at the MACD at the April low. Bounced off the signal line, and off we went to the upside. Does that signal line bounce ALWAYS work? No, it doesn't. But, when key support or resistance gets taken out, coincident with that kind of signal from technical indicators, I start "wanting what the market wants."