Here is my setup for tommorrow.
You can see that the indexes made what looks like a double bottom. Yields and the VIX seem to be at point where they might turn.
So basically we have two ways we can go. If I see a big drop in the VIX and interest rates rising combined with an upturn in the indexes then I go long. If the reverse occurs then I go short.
Another index I pay attention to is oil. When oil gets cheap, everything seems to sell off and it seems like the market is dependent upon it. If oil were to sell down 10 dollars tommorrow, then I can almost guarantee that Appl will be selling down too. At least thats my observation.
There are a few ways to draw this graph. In this graph the box slants up, but it can be slanted down and the candles fit well.
The trick I found is to get in at the start of the trend and then when you are up well enough then it becomes easier to make a decision. Lets say you get in on something at 3 and it goes to 8. Then it starts trading sideways. You can afford to wait and see what happens. However, if you got in at say 7.75 and it starts fluttering at 8 then basically your at an impasse.
A good example is those gold stocks. Gold is something you have to keep your eye on. You could tell it was kind of coiling up and then it broke upward. CNBC wont tell you that it broke up until late in the day. Those guys are players in this poker game too and by the time they announce it then its too late. They probably have some buddies in some funds who loaded up on gold stocks and they were distributing them to the crowd later in the day.
If you saw gold break upward, then you have to think quick. I didnt know any gold mining stocks so I went to seekingalpha and read up on some. Got into some mining stocks early in the morning. Im still holding them as I believe they might have one more swing up in the morning and then I'll pull the trigger on that last swing.
So in this graph. If price starts moving up (or down) tommorrow, then I want to pull the trigger in the direction of the play.
My gut feeling tells me we are going to surge tommorrow. It seems to obvious that we will sell off and I think everyone is prepared for that. One more surge upward to shake everyone out and then downward.
Whatever way it goes Im ready. BTW, take a look at TYH as its sitting right on a trend line since March.
You can see that the indexes made what looks like a double bottom. Yields and the VIX seem to be at point where they might turn.
So basically we have two ways we can go. If I see a big drop in the VIX and interest rates rising combined with an upturn in the indexes then I go long. If the reverse occurs then I go short.
Another index I pay attention to is oil. When oil gets cheap, everything seems to sell off and it seems like the market is dependent upon it. If oil were to sell down 10 dollars tommorrow, then I can almost guarantee that Appl will be selling down too. At least thats my observation.
There are a few ways to draw this graph. In this graph the box slants up, but it can be slanted down and the candles fit well.
The trick I found is to get in at the start of the trend and then when you are up well enough then it becomes easier to make a decision. Lets say you get in on something at 3 and it goes to 8. Then it starts trading sideways. You can afford to wait and see what happens. However, if you got in at say 7.75 and it starts fluttering at 8 then basically your at an impasse.
A good example is those gold stocks. Gold is something you have to keep your eye on. You could tell it was kind of coiling up and then it broke upward. CNBC wont tell you that it broke up until late in the day. Those guys are players in this poker game too and by the time they announce it then its too late. They probably have some buddies in some funds who loaded up on gold stocks and they were distributing them to the crowd later in the day.
If you saw gold break upward, then you have to think quick. I didnt know any gold mining stocks so I went to seekingalpha and read up on some. Got into some mining stocks early in the morning. Im still holding them as I believe they might have one more swing up in the morning and then I'll pull the trigger on that last swing.
So in this graph. If price starts moving up (or down) tommorrow, then I want to pull the trigger in the direction of the play.
My gut feeling tells me we are going to surge tommorrow. It seems to obvious that we will sell off and I think everyone is prepared for that. One more surge upward to shake everyone out and then downward.
Whatever way it goes Im ready. BTW, take a look at TYH as its sitting right on a trend line since March.
