Thursday, December 4, 2008

Cross Currents & Trade update

The 5 and 10 minute stochastic made a trip back up to the top, while the 30 minute continues down, thus I did not sell my short.

And now I have a target: if you look on the right side of this chart, it's the /ES which has gone from 875.5 to 858.5, or 17 points. Now, take 17 points from the peak at 856.5, and you are targeting 850ish.

Now, let's go back to our 5 minute chart and what do we see at 850ish? A support line! I love it when the math works like that! That's where I sell, and I'll bet you that it's very close to where the 30 minute fast indicator reaches oversold.

Of course, I could be wrong, won't be the first time!