Interesting Chart Patterns To Monitor In Coming Days...

[MR]

Look aggressively today for day-trade Shorts.... (bias down today... potentially weakening into a bigger near-term drop.)

(THUR, OCT 27, 2005- 10:34AM eastern time)

[MR]

Sharing a couple observations:

(1) Yesterday I decided to buy, as a hedge move, shares in a mutual fund (USPIX) specializing in shorting the market. This is a little hedge in an account were I cannot short stocks. If what I think could happen in the next couple weeks, this is a way of participating. If I am wrong, this strategy will not hurt much as I have nice profits this year and am willing to give up some of it.

(2) I think NG #F (NY Natural Gas) could be building for a nice weekly chart Wave 4 ("profit-taking") decline.

[MR]

I was wrong about my concern the market was vulnerable to more weakness. Hence, I will be covering my USPIX position on the next pullback. It was only a little hedge, a 'just in case' thing. but nevertheless, I totally overreacted and misread the potential bigger wave count structure building since August It looked like a bigger picture wave 1 wave 2 count 'topping pattern' building with a bigger Wave 3 down coming the next few months.

On a brighter note, NG has weakened more since the last post and it does now look like a bigger wave 4 down in progress.

[DuaneG]

I came across this daily pattern of the Swiss Franc and thought I would share. While we are still in process of building Wave 5, we can see that we are now making an attempt at the 1.3100 resistance level. There is some rough structure of an inverted head and shoulder pattern on the shorter time perspective.

As always, this chart should be used for educational purposes only.

We'll see how it plays out over the next few days.

[misterdgolf]

Are you expecting it to break out above 1.31 or back down after the wave 5.

[DuaneG]

misterdgolf,

Based on the rules of the Type I Buy, we are looking for a potential push up to the MOB. This is basically validating the continuation of Wave 3. By using the MOB, we can can see that the extension may reach anywhere between 1.3200 and 1.3300. More conservative traders may use the lower end of the MOB, more agressive traders may shoot for the high end of the range.

The basic concept behind the MOB is Make Or Break. Based on the rules of this type of trade, any movement beyond the high end of the MOB could in fact push the action higher to the highlighted area. This illustrates where Wave 5 could potentially end if the MOB is surpassed.

If the illustrated resistance is too much to overcome, it doesn't neccessarily bust the pattern, it simply puts the trade on hold until the pattern and Wave structure develop further.

As always, this chart should be used for educational purposes only..

[MR]

Here is a swing trade (See attached chart) I took this morning based on another software program generating
a good signal with acceptable risk/reward. For my Advanced GET buddies interested, Citicorp (C), looks like it is
a Wave 3 not completed yet, a Wave 3 that is develping an internal wave structure. Hence, I think, this Wave 3
will continue extending higher for time being.

My trigger price is 48.85, stop loss is 48.28, target is 50.16. When I play with the Advanced GET wave count
it shows two possible W3 targets, 51.05 and 51.77 area. This gives me some hope that I can extend more out
of this trade then initially designed to do... we shall see... am posting it here so we can track together to see
where it ends up. I have a 1,000 shares.

[MR]

Citigroup update. Technically my stop got picked off by 3 cents, but it closed back above that day
and never came back down. I only place 'mental' stops, so this way I can exercise a last minute
judgement to determine if I really want to get out. I am still long 1,000 shares, for anyone interested.
If I make or lose money on this trade I promise to follow-up on it so we can all learn from my wisdom,
or from my stupidity, which ever shows up.

[Ainsley]

The automated stop loss's and guarenteed stop loss popularity certainly seems to have an impact on the market ie one gets cleaned out and then the market closes higher.

What i do now is use a wide stop loss if trading the trend else a tight one if going against the trend ie wave 3 complete with a possible wave 4 in progress etc

sounds so simple but this was a hard earned lesson

[marsi]

interesting chart patterns

To MR: May your Christmas season be merry.
Some of us out here in cyberland miss your postings of " interesting chart patterns " . Hope all goes well with you.

[jims_id]

New poll

Hello folks

I haven't posted in a long time but I wonder if the administrators of this thread could set up a poll. I think we are at a critical juncture in the stock markets (but what the hell do I know). Here's the suggested poll question:

Which do you believe is correct regarding the markets as they stand on 1-26-06:

(1) The rally that began today is a gift from the trading gods to give everyone a chance to get out of their longs, or

(2) This is the start of a huge rally that will blast through the recent highs registered earlier this month.

Have fun and good trading.

JM

[ACM]

JM
You do not need to be an administrator to set up a poll.
For instructions on how to create a poll see this article from the Bulletin Board FAQs
Alex

[jims_id]

re : Poll

Alexis...I must be blind. I can't find the 'Yes! post a poll' checkbox.

[ACM]

JM
You need to create a new thread to see that option.
AFAIK a poll cannot be added to an existing thread
Alex

[MR]

Been a while, but this is for my friend, Jim.... ND Weekly. . .