I'll start with the Euro again.
1.2385 is my next strong area, assuming continuation of a downtrend.

Once they cleared the backtest, as I figured they would, it can now accelerate, and perhaps make the entire drop back in short order.

I think it would really like 72-73, but I don't know if it will do that today, or not.

C'mon, make your move for 72-73. You can do it. I like when most of my reads play out nearly dead on.

Just two more ticks!

One more tick...

There it is! 72.25.

Another awesome read. Not tooting my own horn, just marveling about the tools.

So, they did make it all back up today, they did get to 72-73 right before futures close, they did come in after that technical signal I mentioned that implied bounce or big drop. It's a powerful signal my newer students should recognize. Amazing stuff. One didn't need to know what it would do, to 'predict' the future, all one needed, in my opinion, was a good handle on the areas, the rough odds, the ability to form a solid premise, and the skills to enter and manage according to a comprehensive 'Trading Plan'. All the stuff I attempt to show students. Oh, as I type this I see the ES hit 73.00 and started to drop fast right into the futures close.

When I do this, I just 'feel' what it wants. It's technical, but it is a lot about feel. I worked extra hard on this skill as yet one more way I took from Bruce Lee's philosophy, to become what I am now, trading-wise (well, life-wise, too).

"Don't think, feeeeeeeeeeel. It is like a finger pointing away to the moon. Don't concentrate on the finger, or you will miss all that heavenly glory."

I should 't have to explain it, it's like explaining poetry, it detracts from the beauty. Anyway, one must engage their 'right brain' as well as their left analytical brain. Develop a 'feel' for the rhythm of the market, the way it flows. Analysis is great, and necessary, I think, but so it 'feel'. And 'context' is critical. The layout, the bigger picture, how the higher timeframes look, how it all comes together. What it is thinking. Don't concentrate on the finger... It's all there in Bruce's philosophy. I think he would have been as good or better of a trader as he was a martial artist.

Armstrong really does make a good case for Dow 43,000 (~S&P 5,000). I think we likely will see that ES 5,000. Once the system starts to collapse next year, as he says, all the central banks will pile in to the markets, as will all those panicking out of bonds, both corporate and government, and into equities. No one has explained to me how so many funds that are mandated to be in bonds will be able to a) sell, and b) buy stocks, which they are not chartered to do. But, alas, they will, somehow, right?

My own personal thinking (this is not advice for anyone (I never give any, ever, under any circumstances), just me musing out loud) is that I want to have all my retirement money locked into the ride from 2,000 to 5,000, and lots of trading capital into longer-term options to get some additional leverage. Many retirement accounts also allow leverage. Then, when it gets close to the end, close it all out and invest in what?????? I'd say hard assets, but what will they be priced at? Houses cheap, or insane? Gold and crude, cheap, or insane? And so on.

The theory, as I understand it, is that only stocks will be rising, everything else will be destroyed by deflation. So, get an additional tripler (or better with some positions leveraged) from here, close it out, and buy hard assets at what, 50% off, 70% off? If it's the latter, based on a tripler in the equities with some leverage, and one would have pretty much exactly 10X the assets one would have now. And all this may happen quite fast, in 1-3 years possibly. I wouldn't mind 10X what I have now, almost all in diversified hard assets, in 1-3 years. Seems reasonable. My favorite part will be listening to the bulls at Dow 30K, 40K, 43K. This is going to be fun. I feel really bad for how poor Tim over at Slope is going to feel...

Timing factor for the ES to come out of this narrow range, but about an hour and a half before the European open? Doesn't it need to burn a little more time up first?

you have a key line pie?

Originally posted by jimkane

Yes, but add in a key line that this was the third time it used, and you really have something.