Kane TD ABCD. I thought I had a sweet sell setup, what I thought was a pretty good Kane Pattern-Line-Fib, completing at 0.618 Fibo Retrace of the GLOBEX Hi-to-Lo, confluent with a Kane DB ABCD also completing at 0.618 Fibo Retrace of the GLOBEX Hi-to-Lo (& 1.618),a Trader's Dream, & 200 SMA touching price. I "put on the blinders" entered & stared at the price action, and completely missed the Kane TD BUY setup completing at a 0.300 Fibo Retrace! The C-to-D leg of the Kane TD ABCD also formed a Kane Pattern-Line-Fib. The Kane TD ABCD/Pattern-Line-Fib trumped the previous setup. I must make a note in my Trading Plan about "keeping the blinders off" when I enter a trade!

Good Trading,

Al Kamego

PS I am still paper trading!
Al KAmego

So, it goes to an obvious .300, which also happens to be the .146 level off the start of the move in GLOBEX at that ABCD, and it drops right to the LOD. Very interesting, and still very weak.

The thing that is very interesting to me is that they know, unequivocally know, that they must gun it up off this area or they might lose control of this. So, I'd fully expect some serious government game playing to start right here. If not, that would surprise me. I'd say they are saving their bullets for a little lower, but since they have unlimited bullets, literally, in my opinion, why wait?

I know it's over for today, but watch this little flat in here to see what it does with it.

So, it reacts off that flat, and goes right down to the .786 'Game Zone', right at a natural set lower //, and up it goes. Now it's at the equivalent place with respect to that pattern, now testing the upper boundary. And cash is closed, after-cash is about to close, and trading for the week is about to end. This leaves it in a tight coil (unless it breaks in the last ten minutes here), with the almost 'guaranteed' bias of the Sunday night GLOBEX/Monday next, all after a big down day. This will be interesting.

It is interesting to see the last few moves on the daily chart, on the up moves the daily lows aren't taken out until it is ready to reverse and same on the down side, the daily highs aren't taken out until it is getting ready to change behavior. I guess some of the simple things intrigue me :)

- tommy

Good stuff, Tommy.

i hope you all are enjoying the trading life... thursday was unusual with the lack of gaps in the index etf's.... but there was one.... and that was all that was needed to signal the computers intent for friday.... as always, it is all just geometry...

of course the prepared trader, trading the stack as i do, already had this bearish scenario firmly in mind with targets.....no regrets...being up in the sky slammin' hand splits while all the roofers 30 years my junior give up because of the heat is the life i love... i was actually the only one up there 2 days this week....

Nice reaction off that IWM ml set. When you get a 88.6 on gap trade setup do you automatically look for a ML set to put on?

yes..as i have stated before,i always want a 4/1 reward risk and the way i do that is anchor a mlset if i can and take a vertical measure to medianline and divide by 4.gaps lead primarily to one of two things... trend days or the computers trying to hit the .886.i use my stack of charts and my simple tools to ask ''what makes sense?''in the case of the IWM chart, the retest of ml set''made sense'' in the case of the QID chart, you know in advance that the computers willoften set up the .886 trade after 330pm when traders minds have turned to other things...thus the late day ramp ''made sense''.. the computers had run out of time to set up trade so they had to ramp price very quickly to get to .886.but if you were not trading a stack of charts, you would not have been focused on the QID as the lone gapper of the day, thus would not have seen the computers well hidden intent.

Slow grind up, but Moody's just downgraded Ireland and the futures started to come off. How long will that last, three seconds, until they decide they don't care who gets downgraded, it doesn't matter, everything is good, up we go? Let's see.