Jim suggested to take a look at daily charts of some secondary indexes and here is my current $RUT chart:



The green ML of a set based on big bearish 3D happens to be also a neckline of a classic head and shoulders. If bulls would not be able to defend this line next week, then a move to the lower ML should follow. This would also be a perfect fulfillment of a successful H&S pattern.
It is all the more interesting as this big bearish 3D fell dead on at the upper ML of a quite important set:

86.00 produces the big snap. But, it came right back down. I can't wait to see if they take it out. If so, wow, that means something to me.

Originally posted by jimkane

But a lot is calling this at 86.

Wow, this may close in the red. Next area down below coming? I posted them, so you all know where I'm watching. I just can't imagine this not bouncing higer. It rolled off my first area posted last night.

ES goes into the red.

Originally posted by jimkane

I can't wait to see if they take it out. If so, wow, that means something to me...

... that this market is BROKEN

we need to fill out a requisition form for more votes

watch 886 iwm and spy 1.27.....the lack of force today seems like a clue that a marginal new low or a retest is needed.....unless the market is broken and we get my qqq 53.47

hmmmmm.....

Okay, lesson for the day. Look at how many times I posted comments on this getting ready to explode up. Over and over and over. Why did I do this? It got to the point it was just plain silly. But, I didn't leave everyone hanging, to figure out my point. I did the post quoted below at the bottom here, to make my thinking clear. Then it hits a dual SL convergence at an area. I then post these comments:

"Key SL here..." (It was actually two, maybe three SL's.)

"Very careful here..."

"Interesting, huh?"

The first post was time stamped at the high tick of the day. Notice, too, this all happened as it took out that key TL to the upside. This should have caused one of two things to happen: acceleration to the upside, or the springing of a snap trap.

Now, go back to my notes on how I thought something was brewing. That they were making it look like it was going to break extremely strongly to the upside. They made it look 1,000% like the outcome was a foregone conclusion. I then posted how I could feel this wasn't right, and that I was taking that read off the table in my decision making. What does that imply?

So, was this a good lesson for the day for everyone? How many got the point of all those posts before I explained it here? Did you think Jim was going mad, or did you remember how Jim teaches and how he says all the time he posts nothing without reason?

Originally posted by jimkane

Now, sometimes (I'd like to think 'usually') my reads are pretty accurate. Here I strongly wonder why I can only see 'up'. Technically it says 'up' to me. I'm like 'one-sided' right now. No way anything else, this is going to break 'up'. That has me seriously considering if 'they' are convincing me of that, or if it is a 'good' read. So, my inclination is to take that off the table for my assessment i.e. not be too influenced by that component right now. It may turn out to be dead on, but it is raising my suspicions. Just some thoughts on my thinking. I use plenty of geometry, but I also use my 'read' a lot. That's just my style.

Quotes of the day:

"Like I said, why are they making it look like it is about to go up??? Because they are about to run it down?"

"I just 'know' there is some kind of game going on here, and some big move brewing."

"When this uncoils, it is going to be something."

First HOD was 94.75, second, the 'retest', was 95.50. Close enough. Posted last night. Point? It sure isn't to brag. It's to show how I had work last night telling me where to watch. It hits the first area and sells, but they bring it back up in a slow grind. This grind gives me endless vibes of huge upcoming strength. It hits, and with, depending on how you do it, a triple SL convergence based on the unfolding price action.

I get a sense something big is brewing, and that them making it look so strong is a ruse, and I post such. It then starts to sell off the area, giving many, many pullbacks for those that didn't want to take it right off the area. Then it just bleeds like a stuck pig into the close, giving back all the gains for the day. It all unfolded in a very reasonable manner.

I had the concepts on the table in here, in advance. It becomes about the battle plan, the scenarios that are in mind, the unfolding price action, and then acting on that. This is why I post these areas the night before. Notice how many of them turn out to be key areas, either to trade against or as magnets?

Areas are important, battle plans are important, price action reading is important, execution of the 'Trading Plan' is important, and so on. Trading is a complex undertaking (in my opinion, others make it simple, do fantastically well, and I'm really happy they can do it like that, but I can't), and it requires all the pieces to be in place.


Posted-06/07/2011 : 02:16:59

Originally posted by jimkane

Sure looks like they want to rise this for a bit now. My next areas above are 93-95 and 96.50-97.75 or so...

it might have to, and we'll find out soon

Originally posted by tx_ches

I could certainly see it going lower though.