market bouce of gap support?

You're right, we are still in an uptrend by my analysis as far as the indices go. One thing to look out for though is a strong gap against the trend that is not filled immediately. This is not a good sign for the market psychologically or for trend momentum.

I am a pullback/reaction trader, I have my own proprietary method of entering on pullbacks/reactions in trends. Personally I have not gotten a buy signal on the indices quite yet, but then I wouldn't take that signal anyway because of this gap. I would look at the following instead:

If your method is saying buy here, I might suggest instead of an index play you look at a sector or stock(s) that either filled that gap or didn't gap down in the first place (high relative strength). I would enter a pullback on one of those, because your odds of follow through will be alot higher.

Goodluck,
 
was friday the fill the gap

all clear sailing ahead type

late in the day move?

or do we retest the friday lows

and break them this week ?
 
Quote from BuddhaTop:

If we trade according to the trend shouldn't we buy here? Market made a higher high so we are still in an uptrend.
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Everyone SHOULD have bought Friday... 1840 gap fill + 50 day MAs. Then cross you fingers for follow-thru, and stop if Friday's low breaks your buffer.
 
Quote from BuddhaTop:

If we trade according to the trend shouldn't we buy here? Market made a higher high so we are still in an uptrend.
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That's what I'm saying. Everyone is shitting themselves talking about how the bubble has popped, but the indicies look healthy to me-- just a pullback to the trendline.
 
Everyone SHOULD have bought Friday... 1840 gap fill + 50 day MAs. Then cross you fingers for follow-thru, and stop if Friday's low breaks your buffer.


thats for a swing trade no ?

what about for a day trade :p
 
Again, I would suggest if given the recent market action, those who bought this pullback should have chosen the stocks or other instruments that are behaving in the strongest and most predictable way. It is my opinion, based on my analysis, that buying the *indices* for any sort of trend-following play would be a risky approach currently. Be wary of this action in here, dare I call it a "fulcrum point" in time.

Goodluck,
 
Quote from TD80:

Again, I would suggest if given the recent market action, those who bought this pullback should have chosen the stocks or other instruments that are behaving in the strongest and most predictable way. It is my opinion, based on my analysis, that buying the *indices* for any sort of trend-following play would be a risky approach currently. Be wary of this action in here, dare I call it a "fulcrum point" in time.

Goodluck,
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Are you saying that stocks are less risky?
 
Quote from SethArb:

Everyone SHOULD have bought Friday... 1840 gap fill + 50 day MAs. Then cross you fingers for follow-thru, and stop if Friday's low breaks your buffer.


thats for a swing trade no ?

what about for a day trade :p
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Sure. Both. That was about as good a "parameter play" as one can get... there was an intraday "double bottom", too.

Here it is after Monday's close... Day players probably took profits already. Swing traders' reasons to play for more are still intact.
 
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