The week starts out 'interesting'. Gold is only a few cents from the 'magical' $1600 level. I think the only magical level is $10,000, and the musings on when that gets taken out. If it does, and the moves were proportional, that prices gas at the pump around $30/gal and crude around $400. Imagine food prices then. The Swissie is exploding, and the EUR/CHF just set another new record low, as parity is now the talk. And this has our futures down a whopping 1.75 points. Wow, pretty scary, the ES down 1.75 points.

Of course I can.

So it runs up around 70 straight up in a few weeks, to a 1.272 area and new all-time highs, and on earnings that we know will be the biggest blowout the company has ever had (in other words, this should already be priced in), it will explode up and run another 50? Yeah, that's what's going to happen. Crazy.

Originally posted by jimkane

So, what do we figure, AAPL will be trading 425 after today's earnings? I'd think that would be the minimum they'd want it at.

ES acting like it is going to run again... We'll see.

Swissie looking like the SNB is doing an intervention. Gold and Swissie dumping hard.

ES wants another push up deep into the area, 1.272-1.618 ext ret, from 22.50-23.75? Or just up and away?

Okay, that area is hit now... I guess 30 points wasn't enough for them.

How did I know to get off the short-side bias? It started to rise off a .786 ABCD. Now, that's strong. And not the kind of behavior I want to see when I'm on the short side.

Could it be a last move right to the area, off an ABCD? Yes, it sure could be. I may also win the lottery tonight. It could be, and with this last push, it would surely trap more people, and get many shorts to quit after that first shot. But, I think it has no intention to sell off here, at least during the RTH. I'll be watching, though...

I will say, if this goes up this 32 points since yesterday, right to my key spot, right at the time factor I have, and then blows it out to the upside without any checkback, I'll be in total awe. And I expect I will be...

Okay, I'm getting amenable to the short side off here, if it does anything. I think it's silly, but I'm ready... In case...

I guess what I am saying is that not every time price hits a line, or lines confluence and price hits them, it's an area that produces a potential trading edge. With experience one can make an attempt at filtering out these areas that just don't have the right look to them. I'm not really talking about subtle, almost invisible variations here, I'm talking about 'obviously has potential', and 'obviously looks totally wrong'. This is frequently something that can be seen by eye real easily, but is very, very hard to program into a computer. I wish I had a chart example off hand for you, but I don't.

Originally posted by tx_ches

Jim, what do you mean when you say "our eyes would say the geometry is not good." How can geometry be bad?

I'm not convinced the algo's are using the same median lines as roofer all the time. On the QQQ's, I drew 2 other sets before I saw roofer's set and even after I drew another set. So all together there were 4 sets with lines going into his areas. The algos could easily have programmed in 2 of them without using the more minor swing low that roofer used.

How heavily do you think the algos rely on measured moves? It seems like I see a lot of median line sets that capture a measured move. I wonder if that is what the algos key on when it is looking like they key on a median line set?