Ending Diagonal

Ending Diagonal SPX

The Market set up very nice for a reversal Monday with a terminating signal at the end of the C wave and the top of wave 2 with a potential of very nasty and long downward wave 3 to begin.

We could see a bit of an overthrow at the open to touch the top of the rising bear wedge ....stops should be placed above the resistance zone ....if it gets above there this is not an ABC retracement but a possible resumption of the larger up trend.


http://neboxian.blogspot.com/2008/08/triangle-reversal-pattern-part-3-of-3.html

Here is a Video I made on reversal triangles the Technical term for them is Ending Diagonal but I try to use more generic terms ...What is Important is to get an understanding of the basic concept.
http://neboxian.blogspot.com/2009/07/markit-tao-thurs-7-23-09.html
Here is an example of an ending diagonal Failure..... that's why I encourage stops.....if ED's fail they are very explosive... and if ED'S work they are as equally successful.....

Fall Montague

Fall Montague

Who is Really pushing this Market?

I was Talking to friends about this yesterday.....I have been trading over 30 years and never have I seen such Shenanigans played out as in this market ...

Article by : Chris Martenson ....very good read!


http://www.chrismartenson.com/blog/market-recap-ridiculous-productivity/30966

Market TAO Friday 11-06- 09

OK... It's Game day! the bears had better show up today with a 10.2 unemployment rate ...If they don't,then they deserve to get it right up the A#$%$...!

Options Trading Stocks to Watch

These are great stocks to follow and day trade with options.
The open interest is very high which makes for easy execution.

When day trading the Delta and Implied volatility are the things to consider.
Deep in the money strike price will give a higher Delta.

I prefer a delta of 90 down to a minimum delta of 50.

That means if I select a Strike price with a Delta of 0.50 and the underlying stock moves $1 the option returns .50 cents times 100 shares. Another way to look at it is, I control 50% of 100 shares per option contract.

The Theta is your time component and comes into play when holding overnight, weekends and into expiration...Although I am in most trades for less than 2 hrs , I prefer to trade options with a minimum 30 days or more of Theta,,,for safety

GOOG
BIDU
RIMM
AAPL
AMZN
POT
MA
GS
WYNN
XOM
ISRG

Market Tao Thurs 11-05-09

Looks like the jobs report came in better than expected.

US dollar Down

Spy to open Gap up at 105.70

financial' s, teck , and industrial' s will lead the AM session


My SPY plan is to Buy the gap and run...... Spy gap fill down to 105.00 and exit above 106 up to 107

Shooting Star Candle Pattern

This is a Shooting Star Candle Pattern..

I would prefer to see them as a top reversal candle but this market activity has not been typical for over a year.

This has developed at the end of a down move over the last 12 days. It closed inside the downward channel and below the purple long term up trend line....so I am optimistic to further movement to the down side but approaching this with caution.

I would like to consider this as a continuation signal and see the Blue blocks develop in the next 2 days and continue lower next week. A break below 1040 and hold would be very bearish....

The 2nd possibility is a retracement up to the 50% Fib line

Bull Market Gone Bad

Based on my Analysis over the weekend the Weekly Charts of the Trans, SPX, Naz, and Dow are beginning to convince me we are definitely rolling over to the down side.....The markets are showing signs of weakness in all sectors and the US Dollar appears to be in the beginnings of a rebound........With all that , I am moving to a sell the rallys mode . I am still cautious of suprise up spikes... so for this week small size trade placement will stay in effect.....if spx remains below 1040 after Monday close I feel confident we will continue to further broader market weakness...