1937-1938 Dow Chart v. Today's S&P

Happy Days!... For Day Traders

Monday: The Wind-up...

Tuesday: The Pitch...

Wednesday: The Bounce...

Thursday: Home Run!

Friday: Waiting For The Other Shoe...

Yastro: "We Are on the Verge of a Great, Great Depression"....

http://www.zerohedge.com/article/yastrow-%E2%80%9Cwe-are-verge-great-great-depression%E2%80%9D

OK. Let's all calm down now. This market is ready to take a hooter off the deep end...
Last Friday we were up against the down trend line for the fifth time in a month.


Yesterday we broke through that trend line and were left with an LML -- a dip lower in the FRO that signals price going lower than 1300.

Today we had an upthrust overnight that sucked in the buyers -- only to hit them with selling pressure. Stop loss orders were hit on the way down forcing all the longs to cover by selling. Thus the multiple bouts of selling. It was a one-way day.

Deal - No Deal

A quiet day before the Memorial Day weekend. But look down at the Daily chart and you'll see a trendline going down that withstood buying activity once again after many tests.

But I don't think the rally is going to go away for much longer. Watch for a head fake to the upside next week.

A Reversal?

We have a similar set-up like the one we saw a month ago on April 21.
While we have technical formations clearly showing reversal in buying strength, price may take a short break and resume to the upside.

A good breakdown will provide a very profitable summer, similar to 2008 when we saw record-breaking swings that yielded massive profits.
Either way, I am ready to trade one-day-at-a-time and take what I get.

The charts below give evidence to a good and profitable day Friday.

Déjà vu -- April 21 - 2011

Looks like we're right back where we were on April 1 (see last post).
Back then I felt a correction coming on (Well, not really -- the indicator on the weekly and monthly charts were giving me clues.)

We should know this coming week of April 25 if we're going up through the February high of 1343 or if that level will be strong resistance.

APRIL FOOLS... NOT YET

After a good day of trades I got nicked for a point and a half into the close. I lost perspective because I didn't obey the buy signals on the 2400 T, 3000 T and 4000 T.