Cycle Trading

[Duma]

Wow, I haven't look at a 60min charts in days.

Let me first talk about a 30min chart. M65 is very close to xuz (cross under zero) which will put it into MD (mark down). This is usually a good place to short. This morning's drop could have ended a wA down and we are now seeing a little rebound for wB. If this is correct a wC is coming and would be a good short. Nothing wrong with riding out a counter wave. I am hoping to make a few bucks from it and will then decide what to do next.

For the 60min chart, M65 is still very high but all the things I said about the 30min chart would apply here. I just like the 30 minute chart much better.

With all the work I have done with RSI charts, the slope of M65 on the daily chart seems to be the most telling for me of when I should be shorting. The issue is that I really don't like shorting unless the market is really falling apart which will not show up until M65 of the daily starts to decline. As of now it is still moving up.

I know you (and maybe me here soon) are a much shorter term investor, so I think my comments about the 30 and 60 min charts are still good at least for a short term trade.

I am pretty comfortable with what my RSI daily chart is telling me for my major investing. I exited Thur at the open at 51.14 (SPXL low of Wed). I then set buy stops for Thur at 52.81, then moved it to 52.41 for today (Mon). It looks like that will still be the buy stop for Tues. That is pretty far from where we are now. If the market get back to there, I would feel pretty comfortable that whatever was the issue with the market for the last 3 days is pretty much over. If I am going to short, I would rather be riding trend waves rather than counter trend ones.

Bottom line for me, I don't think this little (or big) pb (pull back) is over. I am pretty happy to sit in cash and look for a few small trades.