AI
Tuesday, January 29, 2008 5:23:28 PM
Hello Two!
I don't have my 60 min charts in front of me (I am at work), but I will take a look tonight at home, and post a chart with some thoughts.
I am still keeping an eye on the $BPSPX for a longer term bias. Currently we are in X's, so we are on offense. At the time of the last Fed cut (12/11, as you mentioned), the BPSPX was in the X's. However, after that, it reversed down, and we were in defensive mode until the reversal in the BP last Thurs. Could the same happen now (a reversal of the BP's with a Fed cut)? Maybe. I have been reading/studying Tom Dorsey's book Point and Figure Charting, and they had the BPNYA going all the way back to the 70's. There have been 4 times that the BP's have been this low. On two of the occasions, the BP reversed back up, and did not stop till they hit 70+. However, on two of the occasions, the BP's reversed up, then back down (forming some positive divergence to price), then finally back up and going to the 70's. In either case, it was a great time to open some longs.
As I posted, I was long some SSO this morning and sold it. I bought back in later on, but in hind sight, I should have just held on to it. I need to stop looking at the 5 min charts!! LOL!
Probably more info than you wanted, but hope it helps.
Good luck!
I don't have my 60 min charts in front of me (I am at work), but I will take a look tonight at home, and post a chart with some thoughts.
I am still keeping an eye on the $BPSPX for a longer term bias. Currently we are in X's, so we are on offense. At the time of the last Fed cut (12/11, as you mentioned), the BPSPX was in the X's. However, after that, it reversed down, and we were in defensive mode until the reversal in the BP last Thurs. Could the same happen now (a reversal of the BP's with a Fed cut)? Maybe. I have been reading/studying Tom Dorsey's book Point and Figure Charting, and they had the BPNYA going all the way back to the 70's. There have been 4 times that the BP's have been this low. On two of the occasions, the BP reversed back up, and did not stop till they hit 70+. However, on two of the occasions, the BP's reversed up, then back down (forming some positive divergence to price), then finally back up and going to the 70's. In either case, it was a great time to open some longs.
As I posted, I was long some SSO this morning and sold it. I bought back in later on, but in hind sight, I should have just held on to it. I need to stop looking at the 5 min charts!! LOL!
Probably more info than you wanted, but hope it helps.
Good luck!
Jared
jjames10@nc.rr.com
"Don't Panic!"
