A Double Diaper Day for Bears

This is a syndicated repost courtesy of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Reposted with permission.

Here’s the only pattern you need to trade this market successfully.
  11 hours ago, PullMyFinger said:

Maybe I should just start trading the first and last hours of the day. Trade the first hour, go to the beach, get lunch, a quick nap, and come back and wait for the inevitable ramp in the last hour.

Or, I suppose I could continue my policy of blindly buying on any morning dip and waiting for the market to rescue my stupid entries. Then I could stay at the beach all day. 🙂

I would agree with that.

The other thing is, never use market orders in the first 15 minutes of trading.

Meanwhile, this market may be dull, but it sure is orderly. Looks on the hourly chart that we’ve been in a down phase of sorts over the past 6 days, and a 2-3 day and 5 day cycle down phase for the past 2.

Which implies that a cycle low could happen today or tomorrow. Bears then face a day of explosive diarrhea.

With European markets open 20 minutes now, at 9:20 AM CET, 3:20 AM ET, trend s-port is at 4118, 4112, and 4110. s-port level 4103. More trend s-port 4099. I don’t see anything of substance on the downside without breaking those lines. As New York opens the uppermost line will be about 4123. The rest will only be a point or two higher than current, except for 4103 which is a level, not a trend.

Click to engorge

A little liftoff from the upper trendline as I was wrapping these comments. You will want to be sure to double diaper, and check for tight fit, in case this gets going.

This is a syndicated post, which originally appeared at Stool Pigeons Wire at Capitalstool.comView original post.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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