I sure wish someone else would step up and start these weekly topics...

Hmmmm, ABCD playing out nicely, and as they sit at this critical overhead TL, they look like they want to go out today at new highs.

That was hard to see coming...

Now, does it do the 2-tick stop run and drop? I can't see any dropping today, but this is just bouncing against the 240-min upper area. It so needs a pullback. We shall see.

You have to wonder about this. Yes, it can scrape bottom for half a year as the market rises, but the fear level is just zero in this market. All the things that can go wrong, and the fear level is zero...







Chart created on QCharts, courtesy eSignal

I know this isn't completely trading related, but it is out of context in the economic section. Skim this, as it relates to the VIX chart I just posted, and trading. Then you'll see my point. Note the comment on Aug '07.

http://www.zerohedge.com/news/unadjusted-consumer-credit-soars-most-peak-credit-bubble-august-2007

Wait, DIS is down in the after-market? That's a complete impossibility. They must be setting it up to get better prices from the suckers, and then it will rocket straight up.

Anyway, I'll be the first one to sign the petition to get it passed as a law that stocks (and futures) can only be bought, and never sold. Maybe they can be sold to a rising bid price, since if you buy someone must sell, but we'll have a new 'uptick rule'. Unless the issue is rising you can't sell, and there can never be a downtick, so you sell into the rising or steady bid, but once that level is 'taken out' the issue can't trade, like a 'lock limit down' of zero ticks, applied at all times.

But, the reason why this will never come to pass is we simply don't need it, we have that already. So why go through all the hassle to formalize it if it has already been implemented?


And for those that just don't get me:

<sarcasm off>

everyone has now been trained to be fearful of having fear...now all that is left is for the public to decide that stocks are a good place to be after all...

Originally posted by jimkane

You have to wonder about this. Yes, it can scrape bottom for half a year as the market rises, but the fear level is just zero in this market. All the things that can go wrong, and the fear level is zero...

Now here's the interesting thing. A lot of what forms this level for me was not invalidated by the 10.75 point drop right off the previous level. Some things changed, but many remained. The ES just hit 47.00. Now, why mention this? Likely the ES will keep going up in here and ignore that level. Many new things have come into play with the drop (which gave it strength to rise, and made the uptrend more 'healthy'). Still, lots of things are coming in here.

There are also layers and layers just overhead. Many sentiment indicators are at outrageous extremes. This is just creeping and grinding up the underside of lines on like the 240-min timeframe, and so on. A SL just came in here. A new theory I'm working on hits right here. Although it may just keep on moving right on up to those next levels (I'm not sure I've ever seen such a layer of levels from different timeframes all hitting like this), it is very, very vulnerable in here.

I'm very curious to see how they handle this. A blowoff move and then they let it come in? Or, they let it come in from here, despite the incredibly strong look this has? Or just endless grinding up, forever... Gold just set another new high for its move, as did crude. It is truly 'risk on' right now. But, I am wary, and ready for when they forsake it, even if they only do it as a one-day wonder, like they have a habit of doing. We'll see.

Originally posted by jimkane

Next stop if they get it may be around 46.50-47.50 or so.

My gut says we might be up 20+ tomorrow. Shooting for that 1370 everyone keeps talking about...

Post like this has incredible value for my learning process. Thank you Jim.

I've got many questions how to act in few areas which are shown on the chart and I found are critical in early stage of trade, but I know you can't answer it on the forum. I have ideas and experiment with it and I'm very interested in opinion about it.

Originally posted by jimkane

Okay, here's a chart showing some of my posts, marked at the times, as best as I could do it, when I posted them. Also check out the post I made at 15:53:40. I couldn't find the room to squeeze that one on the chart. Everything I mentioned was based on the methodology. Look at some of the other posts, like the one about the lines coming in. Look at that EXP ABCD. Study the higher timeframes and see why I thought this may go up (other than it was Friday close and time to prep for Sunday night GLOBEX/Monday).

No matter how many cool areas lie below, or how much I want this to sell, 'they' want it up, and the defense of the GZ was a clear signal. Note my post before I started this sequence, about rigorously defending the LOD via the GZ. It wasn't my first mention of that. Clues. Technical factors. The methodology. What roofer likes to call 'the tools'. Now, do some work. Study what led up to what I have shown here.

Click image for original size

Chart created on QCharts, courtesy eSignal.