Bounce coming?

[hoodooman]

I,ll buy on the stochastic cross and if it uncrosses, I'll sell for a small loss.

If it goes up, I'll sell on the top price channel.

If I lose, then I will double my position and try it again on the next buy signal etc.

I'll do this as long as the uptrend is intact, i.e., a sell signal on the adx, lower low or cross of the 25 ema below the 50 ema.

I'ed rather lose a little than be late.

 

[Tea]

Quote from dbphoenix:



He seems to be saying that he's anticipating a bounce. Which is why I suggested a look at the weeklies.

Agree with you too. Weekly ma seems like the next spot for a bounce. Would be roughly a measured move down from this consolidation.

 

[NoMoreOptions]

Maybe. I faithfully hope a sustainable bounce is coming. Because that is the only way to ensure the job situation will getting better than it has been the worst so far.

 

[dbphoenix]

Given that the differential between advancing and declining volume continues to fall, a bounce would be an excellent shorting opportunity due to the divergence. A bounce would also suck in a lot of bulls and late-comers, making a sell-off that much more powerful.

 

[illiquid]

I would think that if the market was really setup for a fall, there will be no bounce forthcoming that would let the shorts in easy -- we'd tread sideways a bit then go straight down.

 

[dbphoenix]

Quote from illiquid:

I would think that if the market was really setup for a fall, there will be no bounce forthcoming that would let the shorts in easy -- we'd tread sideways a bit then go straight down.

We might. But the psychological bases of the H&S and the 2B (and the third wave) are that last push, rattling the insecure into thinking that they're missing something. When they realize that they've been left holding the bag, you get a selling panic.

The rounded top is less dramatic, but no less effective. But it requires different management.

 

[Corso482]

You forgot something

 

[Corso482]

You forgot to look at the big picture

Perhaps the market will still go up, and this will be the end of a big-assed bull flag. Maybe it'll go down

 

[dbphoenix]

Quote from Corso482:

You forgot to look at the big picture

Perhaps the market will still go up, and this will be the end of a big-assed bull flag. Maybe it'll go down

Actually, I pointed out in an earlier post that all this should be put in the context of the weeklies.

 

[ig0r]

Here's how I see it... we have been seeing lows that are closer and closer to previous lows and highs that are closer and closer to previous highs (momentum is dropping off, pushes up are weakening and corrections are strengthening, shown by the MACD divergence), notice how this 'correction' we're experiencing right now has brought us down to the lows of the previous correction about a month ago in all the major indices. Also, check this out <a href=http://www.safehaven.com/showarticle.cfm?id=1130>http://www.safehaven.com/showarticle.cfm?id=1130</a>, Nikkei has already shown us a possible outcome, a short period of sidways movement (possibly bringing in sheep on the bull side) and then a sharp sell off. I have been bullish the whole way up, I am now picking up QQQ puts and will soon build up a short ES position, I don't see there being much upside left, probably not even enough to make a lower high and a h&s, look for a bearish flag in the coming days?