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$NYMO Big Hairy Purple Divergence...Again


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#1 Rogerdodger

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Posted 06 January 2007 - 04:26 PM

Looks like it may have already started the correction at December's final peak.
http://stockcharts.com/c-sc/sc?s=$NYMO&p=D&yr=2&mn=0&dy=0&i=p37941675807&a=30820282&r=571.png

#2 slatedrake

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Posted 06 January 2007 - 05:25 PM

Why it might be different this time -

http://www.technical...7/cum010507.htm

I think the most significant difference might be between the levels of the NYSI between now and than...

Edited by slatedrake, 06 January 2007 - 05:27 PM.

Before you start trading get your brain around risk control. Know how much leverage you're using and know when to go to cash if you're wrong.

#3 Bob-C

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Posted 06 January 2007 - 06:01 PM

Looks like it may have already started the correction at December's final peak.
http://stockcharts.com/c-sc/sc?s=$NYMO&p=D&yr=2&mn=0&dy=0&i=p37941675807&a=30820282&r=571.png

Thanks for the heads up RD! The negative divergences stand out prominently on your excellent chart. :)

Cheers, :)

Bob-C
Disclaimer: None of my posts are meant to be taken as investment advice or trading advice. Do your own due diligence and consult your financial advisor before making any trades or investments.

#4 Rogerdodger

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Posted 06 January 2007 - 08:49 PM

You're welcome Bob-c. I look at lots of charts and they seldom say much.
This one seemed to be yelling.
SD you may be right.
One thing not shown clearly on the chart above is the broken trendline.
That also happened on the last correction.
But I know it's never exactly the same, so we will see.
We are getting in oversold territory and we could easily see a back test of the broken trendline.
But a lot of folks may be hurting and with high margin debt, we might be seeing folks get come margin calls soon. :unsure:
http://stockcharts.c...00738&r=395.png

#5 CLK

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Posted 06 January 2007 - 09:31 PM

Roger, I like that rsi system alot, thanks.

#6 Rogerdodger

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Posted 06 January 2007 - 10:14 PM

You're welcome.
I, of course, did not develop it.
I just made a copy of someone else's work. :D

That last buy and sell worked nicely and it alerts to s/t oversold.
But it sure didn't work like buy & hold since July's bottom.

It looks like we should get a bounce soon, near 140 maybe.
But when those trendlines are broken, I get nervous no matter how oversold.

Like this one in MAY:

http://stockcharts.c...2071&r=4262.png

#7 Rogerdodger

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Posted 07 January 2007 - 12:13 AM

This one turned down in December also.
http://stockcharts.com/c-sc/sc?s=$NYSI&p=D&yr=2&mn=0&dy=0&i=p08764908356&a=18554665&r=4789.png