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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Logain Ablar who wrote (46219)	7/15/2010 7:42:57 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70382

I have tended to go with Dave Landey's trend following approach of trading in the direction of the Blue Arrow. The Blue Arrow is loosely based around the 50 day SMA. Since the 50 day SMA's is pointing down on most of the indices the direction is down. The indices that were looking to confirm a trend change failed today due to the sell off. I really think the rally was fueled by buying by those trader caught off guard by the steepness of the market decline and the reversal. As a result Monday is a whole new game. I would not be taking any positions long or short before Monday after the traditional intra-day counter rally around 11:00AM EST. We should get a better idea of the direction by then. Regardless any trend is going to short term. As the real excitement happens one or two weeks after Labour Day when big institutional traders come back from the Hamptons.