AI
Saturday, May 10, 2008 11:48:24 AM
Bob
Can you do a tutorial of the Dragon pattern?
I do not know it and I certainly do not recognize it based on your brief description. I am not saying its not there, I would just like to understand its formation and do you have any sense of how often it plays out when recognized?
I see us at important support short term 1370-1380 spx, this level has been a pivot area, resistance and support.
Given seasonality there is good reasons to be cautious here but over the last year seasonal patterns are not working.
We had our largest gains last year in what traditionally is the weakest time of year (Aug-Sept-Oct) and we performed the worst during what is often the period for market strength (Nov-Dec-Jan-Feb-Mar).
The market is no longer selling news, AIG for example and has methodically climbed higher out of the March 17 lows. There is more reason to be bullish here then there is bearish but caution is warranted.
The spx chart shows all the recent times where price reached the 1370-1385 zone and sold off and the recent breakout above the zone was inevitable but we are testing the zone from above and I do think its critical support. If given up needs to quickly be recovered. I do think we could drop to 1350 and remain bullish if this level for recovered quickly.
The more important line from the bullish perspective is the 45 degree line that runs on the angle from the 3/17 lows. I would like it to hold on a closing basis.
Can you do a tutorial of the Dragon pattern?
I do not know it and I certainly do not recognize it based on your brief description. I am not saying its not there, I would just like to understand its formation and do you have any sense of how often it plays out when recognized?
I see us at important support short term 1370-1380 spx, this level has been a pivot area, resistance and support.
Given seasonality there is good reasons to be cautious here but over the last year seasonal patterns are not working.
We had our largest gains last year in what traditionally is the weakest time of year (Aug-Sept-Oct) and we performed the worst during what is often the period for market strength (Nov-Dec-Jan-Feb-Mar).
The market is no longer selling news, AIG for example and has methodically climbed higher out of the March 17 lows. There is more reason to be bullish here then there is bearish but caution is warranted.
The spx chart shows all the recent times where price reached the 1370-1385 zone and sold off and the recent breakout above the zone was inevitable but we are testing the zone from above and I do think its critical support. If given up needs to quickly be recovered. I do think we could drop to 1350 and remain bullish if this level for recovered quickly.
The more important line from the bullish perspective is the 45 degree line that runs on the angle from the 3/17 lows. I would like it to hold on a closing basis.
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