Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Fiscally Conservative who wrote (47313)	12/17/2011 4:53:15 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 67827

I don't have specific time frames on when specific levels will get hit. I use technical analysis more as a handicapping system. If a specific even happens then technical analysis can give you an indication of the likelihood of a subsequent event from occurring. If the subsequent event does not happen then you re-evaluate. Right now the volatility is high, external news that no one is expecting can move the market in a significant way, The only patterns that have been significantly working that last few months are the three day patterns. The three day pattern usually has a new event the first day. The index or stock moves in the direction of the news. The next 2 days laggards that did not hear the news the first day follow the early traders in. The fourth day traders take profits. The degree of the counter bounce determines what happens after day 5 and 6, either a continuation of the initial move, a sideways consolidation or a sell off. In the new year funds coming into the market as a result of retirement tax contributions will create aa new backdrop to evaluate market condition from. Watch fund inflows. The placement of the funds will happen over the first 3 months of the year. No fund manager wants to be seen holding cash when the funds do their quarterly report. The level of fund inflow will determine how much movement there is in the market.