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DJIA 5 Day RSI SELL SIGNAL


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#1 SemiBizz

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Posted 19 February 2007 - 03:52 PM

http://stockcharts.com/c-sc/sc?s=$INDU&p=D&b=5&g=0&i=t26332622420&r=7893$.png
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#2 ...

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Posted 19 February 2007 - 05:29 PM

Yeah, I'm generally inclined to agree with it because I'm always looking for a good reason to take a profit and often do, but I don't see one yet and won't sell anything this week or most of next week for these reasons: 1) Volume didn't decline while poking around at the latest lofty levels as it has on previous excursions into record territory. Probably just expiration volume, but volume is volume. 2) Breadth is still pointing up. 3) Cyclic tendencies are up for the balance of the week. 4) I'm only about 5:1 long across a bunch of different strong stocks via SSFs with only about 30% of total exposure in the YM. 5) I don't care about minor jiggles whether up or down when the current week looks to be net neutral and the following week or so encompasses the best 5-6 days per month. A major jiggle would cause me to lighten up a little, but only to buy it back a little lower.

#3 SemiBizz

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Posted 19 February 2007 - 06:29 PM

When you draw a trend line across the top of the volume candles from the December spike to Friday. Then Draw another trend line across the top of the price candles from December. There is no quality of volume... As price increases in huge increments, volume continues to go lower...

That is the dreaded "JAWS" < pattern. Sooner or later it will bite you in the (_l_) if you stay in long enough.

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Edited by SemiBizz, 19 February 2007 - 06:36 PM.

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#4 SemiBizz

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Posted 19 February 2007 - 08:58 PM

Here's how I see it on this DJIA tonight. The angle of ascent if approaching FAST UPTREND. I mentioned in another thread today that FAST UPTRENDS feature quality of volume. with shallow retracements.. right now the daily fits the shallow retracement but not the volume.. The way this looks is all the risk is on the long side, short term..the risk/reward is setting up SHORT. You set the covering parameters at the other side of the trend line going higher, small risk great downside potential.... The present monthly, weekly and daily volume says the fast retracement was suspect, a bearish upthrust... that's ok, this thing been going up on a bearish upthrust for awhile now... problem is.. VOLUME - when that comes you better be out of the way.... That'd be March under normal circumstances...
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Richard Wyckoff - "Whenever you find hope or fear warping judgment, close out your position"

Volume is the only vote that matters... the ultimate sentiment poll.

http://twitter.com/VolumeDynamics  http://parler.com/Volumedynamics

#5 ...

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Posted 20 February 2007 - 04:46 AM

That is the dreaded "JAWS" pattern. Sooner or later it will bite you in the (_l_) if you stay in long enough.


Uh, huh. It's been true for the entire last 400 points up in the DJIA. While there's no doubt it will bite at some point, I remain content to sit tight until the end of next week.

#6 arbman

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Posted 20 February 2007 - 07:32 AM

It looks like they gunned again many short stops on Monday's light volume trading...

http://ichart.financ...0,m200&a=v&.png

Next week will be increasing in many ways, the open interest figures will settle and we will see what the firms really did last week for the next month. From what I can see in the COT and the volumes, no significant bullish shift has occured. But what I am really looking for is whether we will see a decline in the open interest again, it will tell a lot about the liquidity expectations in the weeks ahead...

- kisa

#7 SemiBizz

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Posted 20 February 2007 - 10:07 AM

HOURLY NASDAQ BROKEN ON VOLUME... Next good DJIA Support 12651
Price and Volume Forensics Specialist

Richard Wyckoff - "Whenever you find hope or fear warping judgment, close out your position"

Volume is the only vote that matters... the ultimate sentiment poll.

http://twitter.com/VolumeDynamics  http://parler.com/Volumedynamics