Today Was Good
Today we saw a very mild return of some patterns in pennies I haven't seen in nearly eight weeks. This was expected to begin this week and solidify going into next week.
The patterns I am talking about are ones I see repeated every day with the exception of the last eight weeks. Strong early runners tapering down after 9:00 AM, retrace to fibb levels of 50% to 61.8% with the 50MA rising to meet the fibb retracement. Where the fibb level and the 50MA converge, look for strong buying of big dollar trades and not neccessarily a large number of trades. Then the day progresses with mainly sideways price action until the final 20 min or so of the day, with a late stampede and price action hitting new highs in the final minutes. I use a 10 tick chart, 30 tick if volume is heavier. The entry is always at the fibb / MA convergence. If you fall more than 10% from this point the trade usually fails. I have watched this pattern play out many, many times. I made one call today, pre market based on activity and price action. SRCH / she ran from an easy entry at .60 to .82 quickly. I took the retrace / 50MA play from .69 to.82 but I'm certain another five to ten cents could be had early tomorrow. / Cheers / BS
Hat Creek Ranch / We Don't Rent Pigs
