Comments on: SPY Three Push Negative Divergence Intraday Nov 25

By: Spyder

Spyder — Fri, 27 Nov 2009 04:49:23 +0000

Thanks,Corey (This time I spelled your name right- sorry about the Typo)

By: Corey Rosenbloom, CMT

Corey Rosenbloom, CMT — Fri, 27 Nov 2009 03:49:04 +0000

Thanks Bala!

You too! Really liking your new blog – I encourage all readers to visit. Thank you for all the kind words.

By: Corey Rosenbloom, CMT

Corey Rosenbloom, CMT — Fri, 27 Nov 2009 03:48:16 +0000

Haha – well don't let me stop you, but this is a good example of how powerful trade set-ups can produce minimal results – though the negative divergence was up against the bullish bias of a pre-holiday session.

Although, as of this writing, global markets are down around 3% around the world as the American markets are closed, so if Friday pulls the US Markets lower, then the multi-divergence would have 'worked' only with one final push higher toward the end of the day.

By: Corey Rosenbloom, CMT

Corey Rosenbloom, CMT — Fri, 27 Nov 2009 03:44:52 +0000

Thanks Dominick! You too!

By: Corey Rosenbloom, CMT

Corey Rosenbloom, CMT — Fri, 27 Nov 2009 03:43:16 +0000

Hey Spyder,

When looking at negative divergences, one needs to compare price swing highs to oscillator and/or TICK highs - oscillator lows are of little consequence/interest.

We want to see oscillator/TICK highs confirming price swing highs, else a divergence sets in.

It's not so much a statlemate, as the oscillator and TICK were failing to confirm the price highs, highlighting the non-confirmation and hinting at a reversal/deep retracement.

Again, we're not looking at price lows and oscillator lows when discussing a negative divergence.

I want the TICK and 3/10 to be in alignment as much as possible, but I give deference to the TICK as it refers to market internals while the 3/10 is just a derivative of price.

By: steveo77

steveo77 — Fri, 27 Nov 2009 03:15:57 +0000

Ok, I am going to do a little victory lap here…..

Black Swans do not drift in, they are delivered by a cruise missile in the middle of the night, holidays, or on the weekend.

http://oahutrading.blogspot.com/2009/11/chart-o...

http://oahutrading.blogspot.com/2009/08/mania-c...

http://oahutrading.blogspot.com/2009/11/blow-of...

http://oahutrading.blogspot.com/2009/11/30-year...

As America tryptophans out and wakes up weary tomorrow, with half a trading day to “panic out with”, this could be very interesting. Looks like nearly “perfect timing” by our financial overlords. Lots of Turkeys (aka Lemmings) getting cooked today.

By: Spyder

Spyder — Fri, 27 Nov 2009 00:05:06 +0000

Cory, could you elaborate on the fact that the 3/10 Oscillator mimima formed a long series of higher lows and the TICK minima formed a series of higher lows as well essentially forming a converging triangle with the indications you mention up to about a time of 10:45 on your chart.
Seems that there is a stalemate up until that time before the MA's move down. In fact each downward retracement was getting weaker up to that time as well. How did you decide to honor one set of indicators over the other to place the trade?

By: Spyder

Spyder — Thu, 26 Nov 2009 22:49:23 +0000

Thanks,Corey (This time I spelled your name right- sorry about the Typo)

By: Corey Rosenbloom, CMT

Corey Rosenbloom, CMT — Thu, 26 Nov 2009 21:49:04 +0000

Thanks Bala!

You too! Really liking your new blog – I encourage all readers to visit. Thank you for all the kind words.

By: Corey Rosenbloom, CMT

Corey Rosenbloom, CMT — Thu, 26 Nov 2009 21:48:16 +0000