Monthly Archives: October 2008

Are we going higher/lower in the market?

Posted on October 12th, 2008 by

The magical question everyone is asking is the selling over?   Last week has a huge week for all the markets.   No matter what the government did, the market kept on selling.   Friday close was very interesting.    The market made a move upwards toward the last hour after consolidating throughout the middle day.    The market did not close at the high but we did not close at the low either.

Below are the monthly,weekly, and daily charts.   We have drawn the major support/resistance lines for all three markets.    Due to the volatility, it hard to trade the daily at this time.   Therefore, we are going to look at the weekly Ichimoku chart.    For both the weekly and now the monthly, we are in a bearish sentiment.    The last time the monthly charts were bearish was back in 2002.

We know that the long term “picture” is bearish so we trade any daily chart bullish, it has to be very short term.     Some people don’t like to trade against the trend.  If that is the chase, you are waiting for a bearish setup on a daily chart.   Notice, I said “waiting”.    I said waiting because if you don’t have a short position …

Ichimoku Daily Trend?

Posted on October 10th, 2008 by

A couple of people asked why I haven’t blogged for awhile.   Well, there hasn’t been many daily trend setups for awhile now due to the volatility in all markets.     We don’t want to enter with a risk/reward that is crazy.  Therefore, we have been “sidelined” for awhile.     It is better to not trade then lose money.

I am going to start to look more towards long term plays now i.e. weekly/monthly.

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