Friday dropped markets down around 2% after making an astonishing 21% rally over the past few weeks. The volatility in the market is pretty nuts how much we are swinging back and forth. Now after we just made a huge rally to 8k resistance, was todays drop day 1 of another huge swing down? Thats a tough call to make, with so much uncertainty in the markets and doubt in Obamas plans to mark up trillions of dollars to bail us out of this mess I wouldn’t be surprised to see this just be a bear market rally and a continuation of the weak trend. I hope it isn’t. As I favor the bulls over the bears.
In any regards, Heres the Fous 4
The market has been quite interesting the past month or so. Going from a free fall, 8k to 6500. Then strait up we’ve gone, 6500 to close today just under 8k at 7924. This whole period, which i refered too as a vagina pattern in my previous post, hasn’t given much opportunity to play any chart patterns from a swing trading point of view. No solid chart patterns have been formed to play just yet as there hasn’t been much consolidation.
In my opinion the best way to trade this V pattern was to day trade it, which im not a fan of doing. Which is why i have been on the side lines, and have had some critics ask why the hell i didn’t capitalize on the huge move that just occurred. Well probably because im not a pyschic. Of course i could have guessed that this was a short term bottom and yes i did wonder. But trying to predict the short term moves in the current market consistantly is a losers game. The market is is controlled by hype in the media and moves erratically. And then to try and play stocks without good chart patterns on top of this market where the stocks move so closely in correlation with the unrational indicies? Haha… get out of here. Not worth risking my money playing stupid gambles. And too tell my followers to do something like that as well would be inhumain and unmoral.
As far as the DOW technicals go we’ve broke the 6.5 month downtrend resistance line that was around 7500. Now we’re sitting on a heavy resistance of 8k which has been one of the most significant areas over the course of this mess so this will be an interesting time too see how stocks react here in this area. My best guess would be that we sell off from here. But i do believe that we are nearing the bottom in the market and hopefully 6500 was our low point. But we still got a rocky road ahead of us. I was happy to actually post the “Fous 4″ today for the first time in a while. So thats a good start. Nothing more i want that to get back heavily into the market. This is the longest break i have taken since i started trading.
Final Word: I’m waiting for the charts to come my way.
The market has been on the up and up for the past few weeks giving some charts some pretty impressive gains off of their recent lows. Nothing here that i’m looking to dive right into but i like the volume spikes coming in here. These spikes in volume along with strong moves are what begins the best forms of chart patterns to play.
1) volume spike along with strong move – sign that a new trend could be in play
2) stock price consolidates forming a chart pattern.
3) price breaks out on volume from the chart pattern and we’ve got ourselves a trade
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It is kinda obvious that you are pursuing other interests than this market, mainly your other websites. I know you will say there haven’t been any setups but there have been many opportunities in the market recently. Many more than the first half of last year when you had lots of ideas. I do not think its fair for the subscribers that you are not giving us what we paid for. We signed up for you to give us ideas and lately we haven’t received any, not even daily updates. Do you think its fair to pay you over $500 and not giving us anything in return? There are always opportunities in the market, if the market is plunging then there are shorting opportunities but to tell us there aren’t any setups is ridiculous. You have an obligation to find us setups, and its obvious you are not even trying. To not come up with any ideas for months says it all. You are hardly on the chat log, during the trading day, since you have better things to do then we should be getting a refund.
i understand exactly where you are coming from. i was running a business where i would charge people for my service. I ran the same service for 2 years in college for free just trying to build a reputation. And yes i finally got done with school and started ttt as a real business in april of last year. I was living the dream…. I was 23 years old… I bartended downtown so obviously i had some showmenship beyond me being just a bartender. and I made an ok amount of money starting my biz
but whatever service you paid for. 3 month, 6month, or a year. I guarantee you if you followed my advice of sitting on the sidelines for the past couple months you would have saved money. This is a market that no one has ever seen before unless your older than buffet. And you say im not doing nothin….. I can understand that fully because i have other projects going on and im not blogging…..the truth is theres nothing to blog about. I scan the market every day for stocks for stocks to trade… but theres nothing there that i want to trade…… fuck man ttt was suppose to be my career.. I dropped out of college for this… Now im 24 yrs old…. Wondering if i should go back to school. Because the world economy crushed my dreams of being a finance genius. At this point theres not many in the world who want to be involved in the game of finance. But we will come of out this mess at some point. And i will be there when we do. And i know i do have loyal customers such ass dopp, tokyopua,semper trader, ket1390, jensgould, La-onda, NSAflyer, digdug42, mysher, reddog and others…… And thtas not in order. But i love you guys for being a part of ttt. And i do i do have big dreams for ttt in the future i a have some bad ass features for the website coming in the hopefully not so distant future.
Until then…..Be patiant… Im not in any better positian thatn you are….
But as stew said. I am pursuing other interest that i condiser a blessing. To think that this was my only avenue of income would have killed me. I also bartend at http://thebondi.com and am the founder of http://fousocial.com
The market is still in a haze and hard to predict. Hence im still not in the traders seat. Just site seeing until i feel confident the market conditions are ready for the fousinator to come back and dominate. I feel that time is coming soon.
The market just staged a huge near 1000 point rally over the past few weeks. with little profit taking throughout. And i like the fact that this took course over the course of 8 days, rather than a few insane 500 point days. Even 8 days is crazy. But better than what we were going through not too long ago. This cuts down on risk and unpredictability.
Now taking a look at the dow we went from a free fall to heading strait up. Forming a V, Chalice, or vagina pattern i would like to call it. Now were at the point where the right side of the vagina hits the inner thigh. And from here the only way to travel is down the leg. Unless the market defys human phsyiology and heads towards the right hip? Technical analysis suggests we will probably head down the legs towards the knee.
So if you didn’t understand me entertaining myself with my vagina analogies i’ll put it in more clear terms. The DOW is currently trading in a descending wedge pattern that began forming when the DOW free falled in september 08′ and life as a trader started to become fairly difficult. Now the DOW has rallied and is making its 3rd attempt at the descending resistance line which is in the 7400 area.
Now its just a question of where we go from here. I like the fact that we haven’t seen a huge 3-500 point sell off after this latest rally like we have seen before when the market would rally. This tells me that there are possibly more buyers coming in off of the side lines and easing back into the market and the bottom is nearing us. Yet its too early to say, as we’re at a pivotal point on the Dow resistance. Maybe we sell of huge Friday.
My hope is that we see the DOW consolidate in this area for a while and form up some nice chart patterns for us to trade.