Market Watch

[Runner]

Now look at the $BTK chart. VPHM is in the same house as the $BTK.

[Runner]

VPHM/$BTK

[spikefader]

Bullish bias in COMPX. But at resistance, and smart money sells at resistance. I don't mean short this resistance though; bull is in charge trend-wise. This is profit-taking selling I'm talking about. Now, how much profit-taking will there be? Lord knows. Maybe a lot, maybe none. Maybe the EW impulse frenzy will prove that holders here will get rewarded. Now is NOT the time to be short!

I am expecting red resistance to be broken. It's just a matter of when.

[IIC]

A little crude...but this is my first try...I'll get the hang of it...thx dmk

[B.J]

Doug, do you have either a photoshop or powerpoint? you can "crop" and resize the image and save it as a .jpg. Excellent for a first try, though

Looks like your WITS finally ready to rock? Would you be a "breakout" buyer here?

[IIC]

Yes...I have powerpoint.

I think WITS looks OK here...but I own too much...I won't buy anymore....but feel free to load up on it

[spikefader]

Nice chart IIC! lol ..... just a little large cropping will definately make you more popular. Oh, and WITS, looking nicely bullish to me

dmk, here are a few further thoughts to that chart I just posted:

Note from the head, you can count a little 12345abc, then the c was bought to the neckline resistance, it failed there, C was tested, failed, then trapped the shorts in there. This is the kind of action that can add fuel to the bullish fire, as shorts slowly get sweated and squeezed when there is a key reversal and torture drags on. So after the shorts get on board, feeling great about the C correction failing. They think "OK, that SHS neckline was tested, and price failed, this market is weak, and going down". They may set a wide stop on it. Surely stops above the neckline! Boom: the bull steps up to the plate and hits a home run. The neckline breaks and presto, like magic, a new bullish impulse and new bullish PSAR trend in the face of terrible terrorist bombings in London. That overnight and early morning U.S market weakness gets bought big time. It's powerful, it's amazing, it makes no sense to the bears. The squirm, they complain, they stare in disbelief at their screens. What is the world coming to? Don't people see the obvious! No, people don't see their 'obvious' because it isn't there. The reality is that this is a bull market. It is alive and well. Any correction from current levels will be just that; a normal correction.

I can count that we are due another small impulse up since the shoulder completion. This takes us to news highs, leading to abc correction, perhaps test of the red resistance line that now turns into support, and perhaps a whole new series of waves and astonishing bullish maneuvers until exhaustion.

I wonder how many people are STILL bearish and living in hope.... I hope they take any correction as an opportunity to get out and end their suffering. Because this market, on the balance of probabilities is going higher in my thoughtful opinion.

As a side note, I'll mention some hindsight thoughts about U.S. futures yesterday that perhaps offer a key to how markets operate, and specifically how the market actually generated the force to rally so strongly yesterday:

Here I was trading eminis yesterday. Despite my broader market bullishness, my system was generating short signals the whole day. So being the disciplined trader I try to be, I followed those signals. Made a few good trades, got frustrated several times; having a difficult day. Then 2:06pm came around. VIX spiked, but it was in response to bullishness. That is unusual. Normally a spike in VIX is accompanied with selling. That right there, in hindsight, was the whisper that there was a potential for a bullish close. A few minutes later I elected to short the YM after some strength. I got a great entry and was pleased. Over the next 15 minutes I was rewarded with profit and I was targeting new lows, feeling OK about the trade. 2.30pm hits; a key reversal time, and boom, in the face of bearish charts and targets the bull stepped up. Whoever was leading the charge picked the 2.30pm key reversal time to enter. My profit disappeared in the space of 6 minutes. So I stop out for break even in a disciplined fashion and watched the frenzy. I was actually pleased that the bull was alive. I didn't WANT the market to sell, but I was going with it if it was. Anyway, the bull snorted and I covered. I'm sure bigger money covered, and simply added fuel to the fire. I have no doubt there was big money short yesterday, and that covering helped the rally. And I think this is the kind of action that shows us that the big money wants this market higher; that it's not ready to drop yet. While this kind of action is occurring, I feel good about being bullish. After that stop out, I spent the next hour waiting for my signals to align with the bull and generate a buy signal and I eventually secured 20 points on the YM and a couple points on the ER before the market closed and finished the day nicely positive. It was a very good day; made money on a day when most of my trades were shorting against a bull I am hopeful that Monday the bull will be there, and my signals will align with it. Those are the really outstanding days

Best to ya.

[dmk112]

Hey dmk! Good idea for a thread - market action. Great to see more charts! I'll throw a few charts together this weekend on broader market action. Any in particular you prefer?

Spike, can you do an analysis on the SOX? This thing has shot straight up in recent weeks. Thanks!

[dmk112]

Doug, lol nice 1st try.. When you took the screen shot did you press Alt+prtscn?? That way it will take a screen shot of only the active window so make sure the chart is active (you can make it active just by clicking on it).

[IIC]

Doug, lol nice 1st try.. When you took the screen shot did you press Alt+prtscn?? That way it will take a screen shot of only the active window so make sure the chart is active (you can make it active just by clicking on it).

Guess not...I like to take shortcuts...thx...Doug(IIC)

[skiracer]

Doug,
Spike suggested that I buy two programs awhile back which I did and use both alot. Especially the one called Snagit. It's put out by Techsmith and costs $39.95. I thought it was worth every penny as you can do alot with it as far as annotating lines, text, arrows colors etc.... Check it out. You can save it right there in it where you save the images. Very easy and convenient. From it to Image Shack is only hit the browse button and pick your image from the Snagit file and upload to here through Image Shack. Simple.

[dmk112]

Doug,
Spike suggested that I buy two programs awhile back which I did and use both alot. Especially the one called Snagit. It's put out by Techsmith and costs $39.95. I thought it was worth every penny as you can do alot with it as far as annotating lines, text, arrows colors etc.... Check it out. You can save it right there in it where you save the images. Very easy and convenient. From it to Image Shack is only hit the browse button and pick your image from the Snagit file and upload to here through Image Shack. Simple.

Yea it's a really good program I got it too..

[Runner]

EMA string on $SOX. Blue arrow= long signals.

[spikefader]

[spikefader]