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Tuesday, June 8, 2010

No news is good news

It was one of the better days for me.  FAS opened and quickly went to 20.79 and drifted lower to 19.32 by 8.15.  Then it made a double top 20.40 to 19.95 to 20.4 and collapsed to 19.60.  It is like an M with legs 80 cents and center to top 40 cents.  Then FAS took off and accelerated  and closed at 21.1.  I had good short early in the morning and one very good long late in the day.  All the positives I laid out yesterday worked out.


SPX is traveling on the 2x3 Gann line That is neutral to negative.  SPX if it wants to make a bottom just touches a line and takes off it does not travel ( come back again and again) on it.  It is 84th day that is positive.  Gann 120 has come and gone and we did make a low. These are turn dates. That is positive.  SPX did its DMRM and that is positives.  SPX doesn't give that many DMRM signals. The puts and bear ETF both got very expensive those are both positives.  SPX made a LH and LL that is not positive.  Closing at
the high of the day in itself is not negative (It is mildly 61%  positive) .  Bull ETFs made a new low that is deadly negative. Issues always jump up from new lows This rally is probably one of those.   I was thinking we haven't had a KOD or an Intra day reversal in a while
The first chart is FAZ.  It shows a  triple top.  The bottom at 14 and top at 18.  For this to be a true triple top, the current collapse will have to continue  after a brief rally at the mid point around 16.  The decline should take FAZ (18 -14) 4 points below 14 that puts it at 10.  With a fair chance we have just put a bottom this is not out of the question.  
The second chart is Russell 30 mins.  This was the most disappointing index of the day.  It needs to clear the white median line for it to participate in the rally or the whole rally is questionable.  14.6% retracement is at 630 and 23.6 is at 642 passing either one of these milestones would be positive.  This is Russell and things can happen in jiffy. 
The last chart is FAS from March 2009 low.  The lines are Dino's parallel lines. I joined the low to high and drew equidistant parallel lines.  FAS hit the bottom of the channel.  That is an excellent place to form a bottom.  The high on FAS was 39.75.  Gann 50% of value is at 19.87.  Today;'s low was at 19.37.  That is good enough to be called a 50% retracement completion. 
I am feeling a lot more bullish and will trade the bullish side on indicators with stop loss.

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