ES Journal Archive (2006 - 2008)

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Quote from m4a1:

hey b1s2 you're a millionaire, aren't you?:)

i'm serious, i know you are.
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I make underleveraged trades in several markets using numerous contracts.
 
Quote from m4a1:

i want to understand what is fundamentally going on when a divergence happens if there is an explanation.
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The short answer is this: When prices are reaching their top, indicators are tracing lower peaks as there are fewer buyers willing to push prices further. The opposite is then true for prices hitting the bottom. Divergences measure crowd sentiment and psychology in my view. :)


More detailed analysis is somewhere earlier in this journal. You may also want to use the search feature and look for "foolish longs" which is a discussion on psychology as well.--Never mind, here's the link to the foolish long discussion.

http://www.elitetrader.com/vb/showt...31056&highlight=foolish+AND+longs#post1131056
 
Still long from daily charts here. I really can't see getting short or taking profit--at least not yet with the weekly so bullish. For intra day traders, there was a signal very close to yesterday's 5 minute chart signal at 8:20 EST. I am not daytrading and was not looking at the screen at the time, so this is in hindsight. .
 
I do hold some short October calls which are still out of the money. Those will choke some of my profit at the upper end, but I still have free positions working as I have not gone full bore on option selling in this run up.
 
These kind of days mess with those intraday indicators quite a bit, so if you're an intraday trader, it's best to drop down to the 3 and 5 minute charts where the sample can build more quickly. With that in mind, you may want to look at the 5 here and watch for upside reversal.
 
The 5 minute chart is building it's data sample and is becoming more reliable at this juncture than it was an hour ago. Upside reversal pattern has not developed yet, but the 3 and 5 would be the charts to look at today for that possibilty.
 
Tried a short @1354.5 and got stopped out. Yesterday was active scalping for very little profit. I keep thinking this bull is getting tired, but I'm always too early. So far less than a 3 pt range today:(
 
5 minute has certainly shown upside reversal here from 1355.50. We would need a breakout above 1358.00 for a nice upside day. This is all in the face of the downtrend in hourly charts. However, a very clear uptrend has developed in the 5 minute and unless we get knocked down by 1358.00, we should go up.
 
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