unosuke

QUOTE (NAV @ Feb 26 2009, 10:30 AM)
Added more SDS at SPX 776. Avg now at 771. 10 point stop at SPX cash 781.



It can easily reach above 781 and higher. On an hourly bar, what matters to me is if it rejects higher prices and closes under the previous hourly high, it's a failure on price; if it has lighter volume than 3pm Wed. it's a failure on volume; if it fails both we're heading lower.

Just when she was about to cry "Yes", the telephone rang . It wasn't easy after all.

The handles on the cups broke. The right shoulder of the bullish H&S got dislocated.


And then the genius of ironcross "Prior suppport becomes current resistance"



Good trading everyone !

Well said looks bad. But tomorrow is another day with the Fed and White house doing their parts. News over rides all technicals, we know that. Anything can happen and probably will. Best, Islander.

Volume exploded downtown last hour today. SPY, QQQQ, everything.

But I got a little nervous during the light volume test of 780. That inverse H&S was so pretty . . . shame.

Fed and White house doing their parts.

So you're bearish?

"News over rides all technicals" I totally, thoroughly and completely disagree. Technicals come first, then the news shows up. Everytime.

"News over rides all technicals" I totally, thoroughly and completely disagree. Technicals come first, then the news shows up. Everytime.

Isn't that amazing!
It makes me feel like we are controlled by the Fates.

I've read that the best rally's come out of the blue with no news.......but alas, in this day and age of CNBC, Bloomberg, etc, the news will be manufactured to fit the market movement......example.......Bernake gives testimony and the market goes up...they find something in his testimony to account for the market going up that day...if instead the market went down, the media would interpret something in his testimony that was unfavorable..same goes for Geitner and the President.......more important is not the news, but how the market reacts to the news......

As a technical trader the news is mostly irrelevant. My entries and exits are based on technical analysis of the charts. Period. News is "relevant" such as in knowing a big piece of important news is due, like a FED announcement, or jobs data or a presidential speech. There are others. But the purpose of knowing those events is to just get out of the market long enough for the reaction to settle down and get back to chart reading and TICK watching. Another way I use "news" is to watch the reaction to the news, not the news or the substance of the news. If the market reacts positively its bullish. Regardless of the news or whether it was "better or worse" than expected, etc. I've been trading extremely profitably lately and, to be honest, I couldn't really tell you what was going on in Washington. The TV is off and the trading screen is on. On the weekends, I'll read the Week in Review, etc. But in the case of our fledgling administration, whatever is being done now are the planting of early seeds of programs that will either wilt and die or bear fruit way down the road. Has no bearing on the trend approach and failure with the MA crossover I sold 4 times today. Now that approach may not work for you if you have an interest in individual stocks, e.g. healthcare or banks. But in the case of index/futures trading, its all in the charts. And it is of no value to me whether the "reason" for the chart precedes or predicts some ultimate event. but those are just my thoughts mm

"...not the news, but how the market reacts to the news..."
No. You're confusing causation and correlation. Like Maineman, I trade successfully without the tv on.

Edited by Slothrop, 26 February 2009 - 10:26 PM.

News is irrelevant. I never listen to any news when i trade. I actually try to avoid it. It's very counterproductive. Rarely does news change the prevailing trend, except in instances where there's already such a setup for change in place. Then the news just becomes a trigger, not the causality ( like slothrop mentioned).