I thought I might try something different here, and see how it goes. It's quite difficult for me to post a lot to the various topics, especially with charts, since the method I use for posting charts is very cumbersome. Some charts can take me a half hour or more to put together. Since the charts I use for posting are not my 'working' charts, this work is duplicative.

I have various ideas and thoughts here and there about different things, and if I have a 'central clearing area' where I can just put out a sentence or two, pointing to something without doing the work, the members can do what assessment and analysis they want with the ideas, and post charts if they want, preferably to the respective areas they have for that topic. This way it would leave this topic more 'clean'. If you have a question or comment on what I was pointing out you could post that in here.

Let me know if you have any thoughts on this, or anything you think would be helpful/useful. Keep in mind I am not going to just tell you all my best setups in advance, especially if I plan to trade them, as that is not 'what I do' in here, or anywhere. I want to point out things that may need some work, and might go unnoticed otherwise, or are just of interest.

Lean hogs are interesting in here. Set up a TD ABCD set and look at that.

Watch this to the downside (market in general, Russell more specifically). Do the key .382, 60-minute adjusted set, and an upsloping set.

Notice the 4-Point Continuation Pattern here on the 30-min Russell. This is going to tell me a lot, especially with the 60-min set upper // right overhead.

Now here's the curious thing. The 4-Point played right out, but mostly with a gap. Look at the all-sessions tick chart, though. It actually dropped a bit lower and formed a standard ABCD, and then just trended up nicely. This will be hard to show on a tick chart, for example by our resident Russell chart master Duane (let's see what you can do here, Chartmaster), because today was roll out day, and the pattern is best seen on say a 30-minute chart. You can see, though, how it looked off the area, and how smoothly it trended up, right off the area. (Show the 1.000 price projection on the tick chart if you do this one, and use the March contract. Post it in daytrading.)

Jim,

When looking at the 4pt on the 30 min with only day session data it looks perfect, but on an all session chart it looks like it came down to the 1.128 which would be a violation of the pattern, no?
Just curious how you look at this situation.

That's why I said: "The 4-Point played right out, but mostly with a gap. Look at the all-sessions tick chart, though. It actually dropped a bit lower and formed a standard ABCD..."

It's tougher to evaluate when the aftermarket changes the RTH layout. I don't have a set way I do this, it's case by case. When I see it drop down a bit and form an ABCD and then turn, I feel the 4-Point is still valid, and an aftermarket ABCD is kind of laying over the top of that, and that's valid. So a trigger in the aftermarket off the ABCD, all other things being sufficient, is worthwhile for me to consider.

The other day I had a nice set anchored at the low, and it dropped a bit lower aftermarket. I kept the set where it was, even though I knew a slightly lower low existed aftermarket. The set worked out fine, and the difference was really trivial. It's not a perfect system because we have RTH and somewhat illiquid aftermarket hours, but with electronic trading and greater global relationships, aftermarket is getting more important. Perhaps someday the transition to truly 24-hour markets will happen, and this won't be an issue.

The bottom line is I evaluate each case as it comes up, and I weigh RTH a lot more heavily, unless there is a worldwide event and the liquidity floods into the aftermarket trading here.

Thanks for the explanation Jim.

If the Russell (basis June) makes it over the 797 area (assuming it gets there), keep a very close eye on the 801 (up to 804) area.

What I mean is, I am watching an area around 797, and another key one above, in the 801-804 area. If it does make it to the first one and continues on, I am really interested in the 801-804 area.

Before you ask why, understand this. I don't say to watch areas without explanation for no reason. I see some very interesting things above, and it is well worth the work to try to find out why I am looking here. If you know the areas to focus on in your search, then you can better see if you can find out why I am watching just above so closely. All the reasons are contained in the work we have been doing in here in the Day Trading section, for the most part, and in the methodology.

I don't do near as much time work as perhaps is justified, but I also have a time synergy of sorts around 13:11. My gut says if this area gets reached it will be well before the 13:11 time zone, but I thought I'd throw that out there on the odd chance it actually did use it. But it also depends on a move to the area right from here, and if I get up and it doesn't have that in mind, all bets are off.

I think the second chart is particularly telling. I agree with the conclusion, this market is nothing more than Euro-yen carry trade on, Euro-yen carry trade off. No balance, no participation, no depth, as I discussed in my last monthly commentary, just leverage/deleverage, risk on/risk off, and that's it. Skynet is totally sentient. How long, like in the movie, until the machines decide to vaporize the useless humans?

http://www.zerohedge.com/article/tale-two-decouplings