Comments on: Pleasure or Pain? Index at Key Zone http://blog.afraidtotrade.com/pleasure-or-pain-index-at-key-zone/ Helping traders overcome fears and emotions in trading Thu, 09 Feb 2012 12:53:25 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Corey Rosenbloom http://blog.afraidtotrade.com/pleasure-or-pain-index-at-key-zone/comment-page-1/#comment-16079 Corey Rosenbloom Mon, 14 Jan 2008 16:48:42 +0000 http://blog.afraidtotrade.com/pleasure-or-pain-index-at-key-zone/#comment-16079 Hey Steve, Thank you for reading and for you excellent and generous analysis. I like that you use the top-down approach and then segment the sectors. That's how I view longer term analysis for longer term portfolios as well. I use Sector Rotation to help determine holdings, but you have a great approach as well. My flaw is that I spend too much time in the smaller time frames to control risk and apply appropriate leverage for a short time when needed. I bet I would do much better to pull the time frame back and be more relaxed. Right, we're likely going to experience a counter-up swing but longer term, the indexes are in a downtrend on the dailies and not looking great at all on the weeklies. As I always say, it's fun times. I look forward to hearing from you and appreciate you reading and participating. Corey Hey Steve,

Thank you for reading and for you excellent and generous analysis.

I like that you use the top-down approach and then segment the sectors. That’s how I view longer term analysis for longer term portfolios as well. I use Sector Rotation to help determine holdings, but you have a great approach as well.

My flaw is that I spend too much time in the smaller time frames to control risk and apply appropriate leverage for a short time when needed. I bet I would do much better to pull the time frame back and be more relaxed.

Right, we’re likely going to experience a counter-up swing but longer term, the indexes are in a downtrend on the dailies and not looking great at all on the weeklies. As I always say, it’s fun times.

I look forward to hearing from you and appreciate you reading and participating.

Corey

]]> By: Steve http://blog.afraidtotrade.com/pleasure-or-pain-index-at-key-zone/comment-page-1/#comment-15921 Steve Mon, 14 Jan 2008 04:10:13 +0000 http://blog.afraidtotrade.com/pleasure-or-pain-index-at-key-zone/#comment-15921 INDU INDU found support this week around 12500. The 20 & 40 moving averages are about to cross which is a bearish signal. The MACD is below zero for the first time in two years. When the 20 SMA crosses the 40 SMA, it will confirm the official downtrend of the INDU. In the upcoming week, look for either a break of Support at 12600 or a pullback up to 13000. SPY Along with the INDU, the SPY has made a new lower low and is in an official downtrend. The 20 SMA is now under the 40 SMA a very bearish signal. However, there is a semi-big bottoming tail. Look for a slight pullback to 142 - 145 levels. This may lead the market higher in the upcoming week. Comp The COMP followed the INDU and SPY in creating an official downtrend. The 20 SMA is flattening to the 40 SMA. Notice the extra large volume with a slight bottoming tail. 2400 was a key level of support between Nov 06' & Feb 07'. We may see some short cover at this level so look for a pullback to 2500 - 2550. Short Term = Slightly Bullish (next week) Long Term = Bearish Overall: The market, over the past two weeks, have created new lower lows. I'm slightly bullish for the upcoming week, but definately bearish for longer positions. I try to use a top down strategy when looking at the market. I'll start with weekly charts to get the overall direction. I trade a universe of stocks that's made up of the top ten holdings of each sectors' spdr. If the market is bearish, I look at the most bearish sectors. Then I'll look at the spdr's most bearish stocks and look for setups to short. I really love your blog. I look at it everyday. Tell me what you think about my analysis. Remember, I'm using weekly charts for this. Hope you had a great weekend. Good Luck! INDU
INDU found support this week around 12500. The 20 & 40 moving averages are about to cross which is a bearish signal. The MACD is below zero for the first time in two years. When the 20 SMA crosses the 40 SMA, it will confirm the official downtrend of the INDU. In the upcoming week, look for either a break of Support at 12600 or a pullback up to 13000.

SPY
Along with the INDU, the SPY has made a new lower low and is in an official downtrend. The 20 SMA is now under the 40 SMA a very bearish signal. However, there is a semi-big bottoming tail. Look for a slight pullback to 142 – 145 levels. This may lead the market higher in the upcoming week.

Comp
The COMP followed the INDU and SPY in creating an official downtrend. The 20 SMA is flattening to the 40 SMA. Notice the extra large volume with a slight bottoming tail. 2400 was a key level of support between Nov 06′ & Feb 07′. We may see some short cover at this level so look for a pullback to 2500 – 2550.

Short Term = Slightly Bullish (next week)

Long Term = Bearish

Overall: The market, over the past two weeks, have created new lower lows. I’m slightly bullish for the upcoming week, but definately bearish for longer positions.

I try to use a top down strategy when looking at the market. I’ll start with weekly charts to get the overall direction. I trade a universe of stocks that’s made up of the top ten holdings of each sectors’ spdr. If the market is bearish, I look at the most bearish sectors. Then I’ll look at the spdr’s most bearish stocks and look for setups to short.

I really love your blog. I look at it everyday. Tell me what you think about my analysis. Remember, I’m using weekly charts for this. Hope you had a great weekend. Good Luck!

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