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Monday, May 24, 2010

Anything is possible


SPX and FAS opened with a bang today.  It was extremely short lived.  24.8  was the high on FAS I got a signal to short at 24.01 which I took at 24.15 and quicly I got a signal to go long at 24.13.  I jumped out of my long 24.08. 
I switched to playing D2PL (Dino's 2 point line) line (1)  covered at 23.08 for a $1 and tried long at 23.02 line (2) and jumped out at 22.98.  All in all not a bad day.  Way too much trading.  My DKOD failed for the second time in over 6 months.  It is now 22/24.  I also got a new negative DKOD on FAS today.  If this also fails I will hang it up on DKOD as gig is up.  DMRM works  and I have  to be very vigilant. I am trying D2PL more and more.

We did get a higher high and higher low that is positive.  Tuesdays are opposite of Mondays.  That is a positive for the market.  
I have a weekly chart of spx on right.  I have 203 DOMA but 200 would work as well.  It is quite probable that spx touches the 80 week DOMA and jumps up.  The DOMA 80 is at 990 or just below 1000.  In a decline previous highs are better supports than previous lows.   Many bloggers are looking for a rally here as SPX has declined a bit.  The current decline from 1171 is the longest.  We are declining at the rate of 12 - 13 points a day.  This may accelerate instead decelerate like many anticipate and we could see rain fall type declines.  I would keep an eye for it if we start opening with a gap and all we can rally in a day is to barely get even to previous closing that would signal rain fall about to start.
I also have a follow up chart on RUT with Gann 4.  The first decline was from 745 to 635 and it is 110 points. At 1.68 times it is 185 and from 720  top the bottom is at 535 a previous high.  Very probable.  I am not at all bullish.

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