3 replies to this topic

[spielchekr]

Don't trend lines seem much more meaningful when they're reinforced by a major moving average, like this?



Here is the ideal "maintenance fractal" for keeping the 50ma up with the new, lighter-duty trend. The bulls will need to be pulling off the kind of price movement (more or less) shown in the upper right rectangle. Otherwise, the 50ma may seek out another trend line, doncha know?

It's nothing more than the 12-day fractal that preceded the 50-day period outlined in the large rectangle, plus 274 points (the difference between today's close and the close from 50 days ago...1/29/07).



Bulls, your mission, should you choose to accept it, is to generate Three White Soldiers before opex, preferably beginning tomorrow, because a post-opex dump-n-pump rally is also scheduled. This message will self-destruct in 5 seconds ...4...3...2...1...

[spielchekr]

Bulls, your mission, should you choose to accept it, is to generate Three White Soldiers before opex, preferably beginning tomorrow, because a post-opex dump-n-pump rally is also scheduled.

I think the status quo shall be preserved. One down. Two more to go. Should break out any moment now.

[spielchekr]

In this experiment, I'm attempting to determine if trend dictates price rather than visa versa. The fact is that the trend does require price to reach objectives in order for the trend to remain intact. In the case of any simple moving average, the day being dropped from the bottom of the moving average list leaves its shoes to be filled by the new addition to the list. As it turned out, today's candle body was a near-perfect clone of 01/30/2007. Thus price went exactly where it needed to today so that the newly-established 50ma slope would not stray one iota.

Although it was fun to see price do what it did today, it would be remarkably silly to expect perfect replacements to arrive each and every day. But if maintaining a verifiably good 50ma image is important to those who sell large amounts of product to large investors, this is generally what they would strive for, is it not?

Chart posted yesterday...




Chart EOD today...



So did trend dictate price today? Subjectively I would say it did.

[spielchekr]

So far, (recycled) trend rules, price drools.

http://stockcharts.com/c-sc/sc?s=$NYA&p=D&yr=0&mn=10&dy=0&i=p93915953224&a=103378067&r=4460.png