Market Recap 09-24-10 Friday chart 1 Reasons for entry:This morning market had a nice push up to the upside, with very small retracement during the upmove. There is a big bearish divergence build up on the 144 chart, where we are plotting to find the immidiate extention point, also this area is a very deep retracement 89% from yesterday high. At the area of our 61% extention we have triple bearish divergence on 144, the strongest picture for a pullback is given by the 987 huge bulge on the top. 377 is skidding down the rail with Bol.bands aiming down. 610 had a nice foot for down move, and Macds grabbing on the rail down. 1597 was stretched up on rail, very small separation, mostly hugging, finishing a pole that needs a flag, (note that Macds started to curve.) 4181 was plotting the second Macd on the upper rail, with some separation and around the Mid point area of resistance. We are taking a short here expecting to get minimum of 3p.

Market Recap 09-24-10 Friday chart 2 Reasons for exit:

At the first deep retracement from the last pivot we can cover 1.3 of the position as we are approaching usual news time at 10am. We have still power for more down, as there are bear flags on 144 and 233. 377 and 610 have side separation that can cause some bounce. 987 coming to the bottom Bol.band which is possible support. 1597 still rolling on top, still working on drawing the flag . 4181 plotted 3 macds at the Mid point of resistance.

Market Recap 09-24-10 Friday chart 3 Reasons for exit:

We hit 100 % target area. We are still around news time, so the change of direction can happen fast. Small bullish divergence occurring on 144, where 377 and 610 get a great side separation that can cause a snap inside the band. 987 after riding the rail for a short time, Macds cut inside the Bol.band. 1597 Macds are still on top of Bol.band trying to create a bulge, which should push lower, but doesn’t have great strength as there was no side separation previously. 4181 comes close to the rail up. 1597 and 4181 are showing opposite immidiate direction, so we can get some sideways. Because of that we can close the whole position with 3p profit. The bounce at the 100% ext. was a higher low, comparing it with the previous one, which looking at the 4181 riding the rail, can continue higher.

Market Recap 09-23-10 Thursday chart 1 Reasons for entry:

This premarket we had a nice 10 point drop, then longer consolidation at the bottom for a while, during which 144 was building lots of bullish divergence making a huge bull flag. This kind of divergence is a perfect picture to remember for long, especially when market tests the double bottom, and all other charts are picking up strength and grabbing the rail up. After the testing of the double bottom, right after the open, many charts Macds get on the rail such as 144, 233, 377, 610 (after a great foot pattern and oversold RSI). 987 made a bulge underneath and was pushing up as well. 1597 got inside the Bol.band and rolling. 4181 had a great picture for the long this morning as the previous afternoon it created a long separation and great bulge on the side, building lots of power for pushing up the next morning. Now it is finding support at the bottom Bol.band and squeezing for upmove. We expect the market to go to the usual 50% retracement from the morning top.

Market Recap 09-23-10 Thursday chart 2 Reasons for exit:At the 38% retracement measured from the top of the morning, we cover 1/3 to lock some profit, even though we expect the market to run to 50% retracement. 233 Macds after some side separation is on top of Bol.band and rolling, 377 Macds also after side separation are cutting from the side of the Bol.band. 610 had smaller separation on the rail near the Midpoint resistance area, finishing a pole that needs a flag, coming closer to the Bol.band. 987 had finished plotting 3 Macds on the rail, which means it could pullback down again. 1597 is finishing a bear flag formation, coming close to the upper Bol.band which is resistance. 4181 Macds are squeezing and hiding power within for more up (looking at the previous afternoon side separation build up). Reasons for covering part of our position is also ahead of the news time.

Market Recap 09-23-10 Thursday chart 1 Reasons for exit:At the covering of the partial position at the 38% retracement, we keep the boundary in place in case of deep retracement during news time.

Market Recap 09-22-10 Wednesday chart 1 Market observation:This is market observation of the Large Timeframe 4181 shown on both charts above. First one is showing Tuesday upmove in the second part of the day, market made new high, where the Macds were very weak. We can see the weakness by the angle of the trendlines. This kind of picture on Large Timeframes, can bring the market down for a very good retracement for minimum of 8-10 golden nuggets (points). The second picture is again 4181 chart on Wednesday, also showing when market bars tried to retrace about 50% from the Tuesday’s high - the Macds again were very weak (we can compare the bear flags marked with green lines). Both of these examples above are showing very strong bearish divergence, that really moved the markets to the down side significantly.

Market Recap 09-22-10 Wednesday chart 1 Reasons for entry:This premarket , the bars had significant drop and around the open, it was already retracing up, following obvious trendline. We are waiting for a deep retracement up for a short. The move up was a very deep retracement(89%), which is not a surprise looking at the 1597 bulge underneath that caused it. But looking at the 4181, Macds are so weak, they look very tired, no signs of excitement with the upmove this morning (showing the whole upmove was out of gas). We wait for the first good bearish divergence on 144, which is also 89% retracement and a target for our 61% extention that we plot from the bottom’s pullback bar. At the same time there is great side separation on 233, 377 and 610, which creates snap, cutting inside the Bol.band.987 on rail also with separation at the Midpoint (resistance), finishing a pole in need of a flag. 1597 was riding the rail significantly slowing down with small separation, as 4181 Macds are very weak and not supporting the upmove, giving us beautiful picture for a great short to bring many golden nuggets to the downside. This kind of strong bear flag on 4181 (while market bars made deep retracement up) is a million dollar picture . S1 and S2 are both valid short entries at the same area.

Market Recap 09-22-10 Wednesday chart 2 Reasons for exit:Afther the strong drop, which happened quite fast, it caused separation on the 233, 377 and 610 charts, which Macds were strong on the rail down. They all started to slow down finishing a pole that needs a flag. 233 made nice foot formation ready to grab the upper rail. 377 separated underneath with a V shape, which shows nice bounce. 610 had some separation on the rail down, also needed a flag. 987 after plotting 3 macds on the down rail, can cut inside the Bol. band, especially looking at the 1597 Macds hitting Bol.band support. 4181 Bear flag is still working great, as the Bol.bands are aiming down. We are covering here 1/3 of the position and letting the rest ride for more down, with our boundary in place at the deep retracement up.

Market Recap 09-22-10 Wednesday chart 3 Reasons for exit:After the bounce that we expected, the market continued down, lead by the 4181 bear flag. We marked the 100 extention target, waiting for the market to slow down at that area, supported by the Macds. We cover at our target area, as we see the first bullish divergence building on 144. 233 has separation and zigzagging Macds on the side. 377 has small side separation,cutting inside making a foot. 610 also side separation, cutting inside the Band, working on a foot pattern for bounce. 987 had large side separation, which snaps inside the Bol.band, but bands are still wide (announcing sideways). Similar picture on 1597, side separation, but Bol.bands still wide apart. 4181 strong on rail down, but with strong separation, which can cause snap inside, but that will take longer time to occur as it is a Large timeframe. 4181 Bol.bands are apart, meaning we can expect more down. We cover here the whole position, as our trading hour is over. Experienced trader can let rest of position run, with boundary in place, above the last significant high pivot (662 in this case).

Market Recap 09-21-10 Tuesday chart 1 Reasons for entry:

After a strong upmove yesterday, where market pushed for new highs, we can not expect big drop. There is a reason why the market went to new highs, and it will take some time at this area to consolidate, which means mostly sideways. At the low at 9:42 there was a strong side separation on 610 and 987 that caused the first nice bounce, but 1597 was not ready, with Bol.bands wide open to the downside, where 1597 Macds skid on the rail down. The next bounce occurred at 10:11am where 987 created a nice separation underneath with a Foot pattern, which has built up momentum for a bounce. 1597 is also showing strong separation on the side with V shape, which is powerful, and the Bol. bands are coming closer. 4181 after plotting 3 Macds on the down rail, is squeezing which can cause a nice bounce. Smaller charts have some bullish divergence, where market tested the lows again. We have nice bar setup for a long here.

Market Recap 09-21-10 Tuesday chart 2 Reasons for exit:The upmove was quite powerful climbing the steep trendline up to the deep 76% retracm. from this morning high. 144 macds separated zigzagging. 233 and 377 had great run on the rail up, finishing a pole that needs a flag and squeezing. 610 Macds had a very strong stretch on the rail up and separation. 987 Macds also had a very strong stretch up which happen so fast that it caused separation from the Bol.band. When the move up is very fast, like this time, Macds after fast move up (strong stretch ) can lose power fast and 987 Macds show immediate slowdown. Therefore we cover here 2/3 of position as this was great 4p run. 610 and 987 had Bol.bands trailing, need time to come closer, so sideways is expected. 1597 side V separation snap inside the Bol.band did it’s job, pushing up 4p, it can come lower to finish the foot. 4181 came closer to the Bol.band, where it can skid lower or push inside the band. We can leave rest of position for the flag on 610 to form, but it is almost an hour of our recommended trading time.

Market Recap 09-21-10 Tuesday chart 1 Reasons for exit:

Market is going sideways as we expected, due to 987 and 610 bands being apart earlier. We are not making new highs, and 610 after side separation, now rolling on top is preparing for some down move. 987 cut inside the Bol.band and hitting the Upper Bol.band from underneath acting as resistance. 144 has bearish divergence, 233 and 377 after zigzagging during the sidemove, are grabbing the rail down. 4181 is skidding on the rail down too. We cover the rest of position at this area and we are done for the day.

Market Recap 09-20-10 Monday chart 1 Market observation: Today we had an amazing run that came from understanding the market patterns from today compared with the previous week. 4181 chart is giving us best comparison. In the previous weeks market broke above old resistance line which became new support. Market this last week was respecting that line bouncing Strongly 3 times from it, where the top line of the slim jim pattern was new resistance(652 area). Market went to that new resistance line about 6 times, and didn’t bounce strongly off from it, so multiple times, kept pushing on it, not giving up. Now our great indicator, Macds did not have any bearish divergence, but pretty much no divergence (flat),(example of strong divergence is shown on the beginning of the chart, from two weeks ago). For the market to drop strongly, we need to see a picture similar to that example shown, of super bearish divergence, but we had none today. The bolinger bands this morning were also sideways, where bottom Bol.band was acting as support. Market this morning tested the 50% retrace from the Friday’s bottom, where made a Bull flag on 4181 and finally broke through the resistance with power. Macds strong stretch are showing the strong power, telling us that the buyers are on a mission (especially after breaking strong resistance to new highs) and shorts are not recommended, or will be short lived at an area of slowdown.

Market Recap 09-20-10 Monday chart 2 Reasons for entry:Previous chart explained the vision for a long run. We wait for a deep retracement down for a long entry. See how the market was gliding down the trendline, to the deep retracement area (which is also 100ext area from the top pullback bar). The 144 macds had multiple separations since the open, accumulating power. The bars did pee-ca-boo through the down trendline, testing the double bottom and 50% retrace from Friday’s bottom. It gave us two chances to enter long, where L2 gave us pullback chance for entry. 233 had very nice separation one after another. 377 also great side separation. 610 gave us some separation on the side, but was not the strongest chart in our favor. The strongest picture came from 4181 bouncing off the sideways Bol.band where Macds created a bull flag (note the small bulge on top, was not strong as there was no side separation previously). 1597 gave us great Foot , with Bol.bands also sideways, Macds getting underneath and bulging. 987 separated and squeezed underneath the Bol.band.

Market Recap 09-20-10 chart 3 Reasons for partial covering:After a smooth run up, we had slight slowdown at the 61% retracement area from the morning high, where 144 Macds were zigzagging with separation on side, then on top. 233 was on rail up, greatly separated, finishing a pole that needs a flag to cut inside the bands. These Macds here even though they are separated, they had great stretch, so usually we expect some retracement and more power up leaded by the larger Timeframes. 377 strong on rail, some separation and squeeze to form a flag on the just finished pole. 610 had come to Midpoint, area of possible resistance and finished plotting 3 Macds on rail , which can give us good pullback down. 987 and 1597 are trying to push through the upper Bol.band on a still sideways Bands, which now act as possible short term resistance. 4181 still in a mission to continue up after bull flag, but Macds have medium strength for now. We cover 1/3 here, as some pullback is expected before more up.

Market Recap 09-20-10 Monday chart 4 Reasons for exit:After the first small pullback, Macds on many timeframes are pulling up with strong stretch of their Macds. Especially 4181 and 1597, which strong stretch up is pulling all smaller timeframes up, even when they seem tired. On a strong market moves, we need to wait for a great divergence to form, in order to exit some or all of our position. First chart that shows weakness is of course the smallest one 144, then next is 233 is also forming a great negative divergence. Their Macds both grab the down rail and start to ride it down, in the same time with 610. 610 was separated but still strong on rail, finally rolling on top of Bol.band and grabbing onto the lower Bol.band to ride it down. Note that when 610 RSI gets overbought in a very strong market run, can stay overbought for a while. 987 side separation huge and bulging. 1597 was very strong on rail, created a pole that needs a flag for more up. 4181 hugging the rail with huge strength. Not recommended to try to short this kind of picture, as it will take a longer time for the large timeframes to slow down, if they slow down during the whole day. We can cover here after 1hour of doing business, or let rest of position run for more upmove.