The Sunny Side of the Street
TECHNICAL ANALYSIS EDUCATION: EXPLAINED AND DECIPHERED FOR NEW AND
VETERAN TECHNICAL ANALYSTS ALIKE.
TUESDAY EVENING -
Sept 09, 2003
Archives of Past
Commentaries . How Did We Do?
Weekend Stock Picks --
CLICK HERE
Figure 1a: COMPARISON: DOW vs SPY vs NASDAQ (Intraday)
$44,893 in Stock Picks to date! Click Here to view.
Tonight’s commentary will be brief, contained entirely in this email, and without charts. I’m working with a consulting client full time over the next 3 days and concentrating heavily on TradeStation code, and thus am not trading during his visit.
The intraday system gave a sell signal today, near the low turning point in the QQQs and then headed back up, turning gains into losses. Toward the end of the day the market turned on its heels and headed back down, netting an overall down day in this period of correction that I keep talking about.
My studies suggest that the next Attractor lower is where the markets are headed and on the QQQ that should give us support at about 33.63. In making that move, however, there should be one more small move upward, since the RSI is already low enough to sustain a full move upward. So, what is likely to happen is for the market to head down tomorrow, and then head back up taking the RSI upward from where it will have room to move further on down.
More pictures and lines tomorrow. For now, watch for the next Attractor and expect more sideways activity as this correction unfolds.
Figure 5a: EuroDollar Weekly
The long-term nature of trends in currencies
still has us short the Euro. Bit by bit it keeps drifting on downward,
but nothing in a hurry. In the general nature of currencies, this
trend is taking a long time to get established and a long time in the
trending.
This commentary is meant only for EDUCATIONAL PURPOSES. It is to help you see how a Technical Analyst reads the signs in the markets.
Stay sharp and on your toes. Moves can reverse on a dime, anytime. Let the market speak to you. If the market is going down, by golly ignore my commentary from the night before and know that the market is going down.
RULES OF THUMB:
0. I keep the chart in Figure 1a on each day's commentary simply to illustrate how much in tandem the 4 indexes I watch actually are. For this reason, I don't always comment on every index. Analysis of one speaks highly for the same analysis for each of the other indexes.
1. When price is pushing the upper Sunny_Bands upward and then eases off and moves back toward the midline, it's time to take profits. If it starts moving up and pushing on the Sunny_Bands again, it's time to get back in. Likewise, if the market is pushing down on the lower Sunny_Band and eases off to move back to the midline, it's time to take profits from the short play.
2. Divergence of the RSI and price is another good time to take profits and wait for a breakout of price before taking a position.
3. When the exchange puts in curbs or trading halts on a large move down, it usually (not always) stops the downward motion. After the market reopens is a good time to take profits from your short position.
4. The market can't go nowhere forever. Eventually, who knows how long it will be, there will have to be a breakout-- one direction or the other.
5. This commentary is for educational purposes only, and is meant only to teach readers about my indicators, other technical indicators, and how I read them.
==<:>==
While it may be true that a picture is worth a thousand words, it is definitely not true that a picture deserves a thousand words.