3 replies to this topic

[SemiBizz]

Posted February 19th



The Dreaded JAWS pattern

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.

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....

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

And the volume came alright...

And... it's not over yet either.

Edited by SemiBizz, 28 February 2007 - 09:01 PM.

[SemiBizz]

Now lets look ahead as to why I said this isn't over...Nasdaq has been the strongest index of late...

Today was an extremely BEARISH day for Nasdaq. The 2007 monthly low on Nasdaq came within one point of being tested. Now since February is a lower volume month. That test would have come on lighter volume. As I have mentioned many times before, when a swing point is tested on lighter volume it sets up a divergence, in this case it would have set up a BULLISH SPRING.

Since we did not test it in February, it's highly likely that the 2394 swing low will be tested in March. Looking back at the last year, you can see that March is one of the highest volume months of the year. So instead of springing off a lighter volume test in February of the monthly swing low, we're all set to break it on substantially higher volume... very BEARISH. Quality of Downside Volume. I see 2251 target.

http://bigcharts.mar...&mocktick=1.gif

Edited by SemiBizz, 28 February 2007 - 09:25 PM.

[SemiBizz]

http://stockcharts.com/c-sc/sc?s=$NYDNV:$NYUPV&p=DAILY&b=5&g=0&i=0&r=2953$.png



97/1 Down Volume vs Up Volume.... I can't find anything bullish in that.

[SemiBizz]

Another HUGE VOLUME Day. The lows we made this morning will all get tested...