What a roller coaster
ride! Actually, it looked worse than it
was. We played the entire day within an
18 point band. The volume was only 1.7
billion with a ratio of 2.1 to 1 in favor of the bulls. Pretty good efficiency for 15 points.
The daily chart shows that
the bulls still have control of both the channel as well as the
indicators. Every time we try to write
the obituary, the buyers step in. Dip
buying is the name of the game. It has
been the game for months.
The hourly charts show the
roller coaster ride today with the bulls taking the advantage. It was tough to trade IF you were not playing
the support resistance lines. Bottom
line - bulls in control here too.
The ratio chart was strong
all day and served as our guiding light.
I need to make one point here - this chart NEVER signaled a sell because
we did not get a 21/50 crossover. Now we
need some follow through.
The weekly chart recovered
and is now back in the bull camp.
The Wilshire chart looks much
better and the P&F added another X.
I had a couple of trades
today. I added 10% of QLD at the open
(yes, I broke the early trading rule) and another 10% on the recovery. I am still just experimenting with QLD and
trying to get a feel for the movement.
Using the Qs for guidance. It
looked like some kind of sell program kicked in today but, in looking at the
total volume, it must have been some small fry hedge funds. I do not see the footprints of a Fidelity or
Vanguard in the volume numbers. The
strong recovery also suggests it was some small guys. So, now we have a firm higher low - is a
higher high to follow? If you are going
to play the TA game and, given the present charts and indicators, you have to
call it up. We will see - but I’m
following the ball. BTW - this is a
risky trade until we break 2580.
Charts link below.
Have a good evening,
The Old Fool