Comments on: Trend Day turned Rounded Reversal

By: AtT Best of 2009 Part 1 | Penny Stock Trading System Blog

AtT Best of 2009 Part 1 | Penny Stock Trading System Blog — Sun, 14 Feb 2010 10:04:39 +0000

[...] Trend Day turned Rounded Reversal [...]

By: Corey Rosenbloom

Corey Rosenbloom — Fri, 09 Jan 2009 14:27:35 +0000

Dave,

Good call! I’ll try to point that out in a blog post soon. SDS formed a doji/shooting star at the confluence zone – quite interesting indeed. It then moved to new 2009 lows and then now appears to be testing resistance (of course as the S&P tested support). Looks perhaps easier to interpret on the SDS.

By: Corey Rosenbloom

Corey Rosenbloom — Fri, 09 Jan 2009 14:25:34 +0000

Anon,

If we are in the Large Scale 4, then Dow 9,600 is absolutely a possibility. I need to run the Fibonacci numbers to see confluence resistance like I’ve done on the S&P but I could see that happening if we don’t fail at these levels now.

By: Corey Rosenbloom

Corey Rosenbloom — Fri, 09 Jan 2009 14:24:19 +0000

The Daily Equity Charts look good right now, in terms of the EMA support below and positive divergence – plus a ‘feel’ of bullishness. All of that would be destroyed in one good down-swing, and range has been contracting.

Does McHugh say we are in the Larger 4 up or the Fractal 4 up of Large 3?

You’re right about the stimulus. The last stimulus bill popped the market up for a good swing only to have it fall to new lows. We’re due a counterrally – we’re in one – but there is strong overhead resistance particuarly about the 1,000 level. Would most likely be a great place to get short there – a lot of people will likely have the same idea.

By: Corey Rosenbloom

Corey Rosenbloom — Fri, 09 Jan 2009 14:21:21 +0000

Charts,

KOL – Coal ETF – looks to be developing a good structure. Large scale positive momentum divergence and we’ve reversed the daily trend back to up. EMA support at $15 if it holds.
Good call!

By: DaveB

DaveB — Fri, 09 Jan 2009 06:20:08 +0000

Anyone notice DXD and SDS with confluence resistance last month? The 20ema crossed under the 50ema in mid-Dec and prices were rejected at this reverse confluence zone shortly thereafter.

By: Anonymous

Anonymous — Fri, 09 Jan 2009 06:12:21 +0000

if we analyse the pattern formed during the last week, we can rather expect today’s behaviour and the high probability of the price to reverse up. Rarely we can see the price going down long without filling the old (not today’s) gap, without at least retesting the local highs IMHO

By: Anonymous

Anonymous — Fri, 09 Jan 2009 06:10:06 +0000

Tom Bulkowski believes that to March’09 Dow gonna reach 9600

By: toad37

toad37 — Fri, 09 Jan 2009 05:50:20 +0000

that was me Corey, sorry, forgot to plug in my name.

By: Anonymous

Anonymous — Fri, 09 Jan 2009 05:49:38 +0000

Robert McHugh, a great technical analyst that I follow, thinks we are most likely still in 4 up fwiw. I know it’s hard to believe, but with all this stimulus from the government, we should be able to push up to 1000+. I’m looking to play the long side into options expiration next week. Some of the solars sure are catching a great bid lately.

I’m absolutely licking my chops at the idea of scaling into puts if/when we get above SPX 1000.

Great post Corey.