Here comes the breadth
Started by
CLK
, May 22 2007 05:17 PM
6 replies to this topic
#1
CLK
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Posted 22 May 2007 - 05:17 PM
Very clean Inverse H&S. Notice the bunching of the days for the turn.
#2
Russ
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Posted 22 May 2007 - 05:23 PM
macd is aguing that breadth is going to fall more.
"Nulla tenaci invia est via" - Latin for "For the tenacious, no road is impossible".
"In order to master the markets, you must first master yourself" ... JP Morgan
"Most people lose money because they cannot admit they are wrong"... Martin Armstrong
http://marketvisions.blogspot.com/
"In order to master the markets, you must first master yourself" ... JP Morgan
"Most people lose money because they cannot admit they are wrong"... Martin Armstrong
http://marketvisions.blogspot.com/
#3
CLK
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Posted 22 May 2007 - 05:24 PM
macd is aguing that breadth is going to fall more.
12,26,9 is a somewhat lagging setting for a daily, I prefer 5,44,5.
#4
arbman
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Posted 22 May 2007 - 05:36 PM
12,26,9 is a somewhat lagging setting for a daily, I prefer 5,44,5.
All of the momentum indicators usually lag, you usually look for divergences only and the divergences always need to be confirmed by the price --because the momentum lags...
Here both the MACD and CCI are diverging for a turn, in other words the momentum of the downside breath is already slowing down, it doesn't mean the prices can not decline further, but it is close to a price low unless it accelerates and the setup with the divergences disappears. The breath leads, so if the price declines, the damage should be limited with this kind of setup, again unless it accelerates rapidly, but this particular setup does not suggest so...
I favor a last (yet another one) and spectacular blow off from here, however I do not expect the breath to turn significantly. You have the same kind of deterioration in the cummulative new highs vs new lows momentum. Here's a recent leading chart about the liquidity in the months ahead and it doesn't suggest much of a strength...
http://www.traders-t...st&id=5575&.gif
- kisa
Edited by kisacik, 22 May 2007 - 05:44 PM.
#5
CLK
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Posted 22 May 2007 - 05:52 PM
TICK has bottomed per macd without a price drop.
This should mute any downside that develops and uptrend should
remain for another month or more. We can get a big drop
to be over quick as in Feb. but I think that is a ways away.
Put/Call does concern me, but will wait to see.
This should mute any downside that develops and uptrend should
remain for another month or more. We can get a big drop
to be over quick as in Feb. but I think that is a ways away.
Put/Call does concern me, but will wait to see.
Edited by CLK, 22 May 2007 - 05:55 PM.
#6
arbman
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Posted 22 May 2007 - 06:13 PM
Here we are drooling over each other about how well the price stood with all of the bearish charts with some bullish divergences 
I hope it works out for you, it doesn't have to, I am playing the support and resistance from here, price iz da king...
- kisa
I hope it works out for you, it doesn't have to, I am playing the support and resistance from here, price iz da king...
- kisa
#7
CLK
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Posted 22 May 2007 - 08:11 PM
Index P/C - 3.85. 
a little bit.
Got to keep making higher highs over the next several days
for the signal to be false.
a little bit.
Got to keep making higher highs over the next several days
for the signal to be false.
