The ACD Method

kinggyppo · Oct 24, 2012

interesting levels here on NQ correction or beginning of the bloodbath what say you Mav?

Maverick74 · Oct 24, 2012

Quote from kinggyppo:

interesting levels here on NQ correction or beginning of the bloodbath what say you Mav?

Number lines are firming up on the Q's. The ATR A down in the ES is right below this level. Ironically the Q's have already confirmed the A down as well as the monthly A down. The numbers paint a very mixed picture. I think the two better shorts are oil and Gold. Oil now is at -5 on the momentum number line and -19 on the 30 day. Also my proprietary volatility indicator is indicating an explosive move in both oil and gold. Since both have very negative number lines, I expect these moves to be to the downside. I think oil and gold will be cleaner then the indices. There is actually a lot of sector strength out there in the indices that are going to make the selloff in stocks choppy.

Shanb · Oct 24, 2012

Quote from kinggyppo:

interesting levels here on NQ correction or beginning of the bloodbath what say you Mav?

King watch the QQQ to bounce into next week. Not much cause to take it lower at the moment.

Also some numberline divergences across the board in the sectors(short term). Any bounce will likely be short term but it can be viscous given how oversold we are!

Note AAPL reporting on thursday which will obviously have an effect. The action is the action tho!

boze_man · Oct 25, 2012

Quote from Maverick74:

Number lines are firming up on the Q's. The ATR A down in the ES is right below this level. Ironically the Q's have already confirmed the A down as well as the monthly A down. The numbers paint a very mixed picture. I think the two better shorts are oil and Gold. Oil now is at -5 on the momentum number line and -19 on the 30 day. Also my proprietary volatility indicator is indicating an explosive move in both oil and gold. Since both have very negative number lines, I expect these moves to be to the downside. I think oil and gold will be cleaner then the indices. There is actually a lot of sector strength out there in the indices that are going to make the selloff in stocks choppy.

Mav I assume you mean the QQQ's confirmed the QTR A down? I dont normally look at the QTR levels but i reckon it probably around 2700 for the NQ?

Maverick74 · Oct 25, 2012

Quote from boze_man:

Mav I assume you mean the QQQ's confirmed the QTR A down? I dont normally look at the QTR levels but i reckon it probably around 2700 for the NQ?

Yeah, sorry, typo. Meant to say QTR A down.

Maverick74 · Oct 25, 2012

Fascinating chart taken from Barry Ritholtz's blog.

Maverick74 · Oct 25, 2012

BTW, a little bit of trivia for ya. The bull market (K) on the chart was the one where Nicholas Darvas (the dancing trader) made all his money. You can see, he had a great market to work with!

bozwood · Oct 26, 2012

Quote from Maverick74:

BTW, a little bit of trivia for ya. The bull market (K) on the chart was the one where Nicholas Darvas (the dancing trader) made all his money. You can see, he had a great market to work with!

He actually made his money only in the very last part of that run-up. In fact, he bemoans the fact that he missed the big move from somewhere in the '53 - '57 time frame.

Maverick74 · Oct 26, 2012

Man, these number lines look god awful across the board. Only a few sectors showing a lifeline. SMH and IYT are holding their own. TXN helping the semis out.

Gold trying to hold it's QTR A level around 1713. Copper was a bright spot today along with both the Euro and the Aussie.

Heating oil cracks continue to go vertical.

gptrader · Oct 29, 2012

Quote from kinggyppo:

interesting levels here on NQ correction or beginning of the bloodbath what say you Mav?

A few months ago Mav commented that the markets don't give you much time to escape when trending sideways. This storm could become the reason many don't escape unless this turns around. /ES near 200 and nothing technically good about the patterns.