Replies to post #229 on Collective Intelligence

[phrantic]

Welcome aboard Celsius. I just looked at the chart. If it was me I'd be selling. The reason I say that, number one, I'm very cautious and strongly believe in capital preservation. The chart is approaching exhaustion and there's 3 gaps from last Wednesday, Thursday and Friday that very likely will have a strong tendency to pull the SP down to fill. Some chartists will argue the candle tails fill the gaps. That is very very rarely true. Remember, candle tails can many times represent one transaction, whereas the candle body represents the market mindset. The overlays and indicators look really good on the chart, but the one thing that concerns me is the ADX is nearing 50 which signals exhaustion/change of trend. If you're going to stick it out and hold, watch volume real close. If volume starts falling back, that's a big red flag. Hope that helps.

[phrantic]

A couple other points I forgot to mention. On the chart the CMF is demonstrating very weak buying pressure which compliments the ADX nearing exhaustion. I also note that Friday's volume was down from the prior day's trading. Again, I would exercise much caution. Hating to miss "some" of the upside can be a very expensive lesson in frustration. Volume is the nexus of what's coming next.
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