The morning session of January 5th gave us a great chance to see two principles/trade set-ups in motion, which both serve as great educational examples of the “TICK Flush” and “Dual Divergence” situations. Let’s see them and then define them for reference.
Many traders are throwing around the term “January Effect,” especially as we turn the corner into January 2010. Some are trying to profit from the “January Effect,” but what is this ‘effect’ and how can we monitor it? Let’s find out.
… and “Familiarity Breeds Contempt.” Let’s take a quick pure price look at the recent five overnight gaps in the SPY – S&P 500 during the oozing uptrend that is taking place in the holiday bullish seasonality in the US Equity Markets.
I know – the title sounds… less than fun… but for those of you interested in learning intraday Fibonacci methods, today gave a great example of both the Retracement and Projection concept, and I wanted to share that lesson with you.
Let’s take a look at the SPY intraday chart (5-min) for December 28th:
A reader brought to my attention the intraday stock price of Network Appliances (NTAP) and I wanted to show its near-perfect example of a Rounded Reversal intraday structure transition. Let’s see it on the 15-min frame.
I wanted to highlight another ‘intraday confluence’ Fibonacci post to show the confluence resistance that came together at the morning $110.00 high in the SPY as a good educational example of “quick” Fibonacci trade concepts. Let’s see it:
Here’s a quick mid-day post highlighting the short-term Fibonacci Retracement grid from the overnight highs to this morning’s low, which was active in setting up at least one trade set-up as price tested the underside of the 50% Level. Let’s see this and also note a current trendline to watch.
In another interesting complete Bear Flag that formed into yesterday’s close, giving a target to trade on any downside break of the lower trendline in the morning session… price had already met the price projection target forecast by the bear flag right as the market opened! Those are some of the most frustrating experiences, when…
Today’s trading activity gave a great opportunity for me to discuss intraday Fibonacci and how it can be useful for uncovering support and resistance levels that others might not be seeing. Let’s take a look at two dominant Fibonacci grids that were very helpful in guiding today’s trading session.
I wanted to call attention to an article written today by the Fibozachi website entitled “It’s 3:27… Sell!” which was also republished at Zero-Hedge.
I’ll let the full post explain the charts, but the main idea is that market internals, including the Advance-Decline Line, UpVol – Down-Vol, and TICK started to make new lows on the session prior to the afternoon sell-off – attributed to the ISM Manufacturing data missing expectations… or a sell-off ahead of Friday’s “Jobs Report.”