Seen this story before

Sorry for no updates since Monday, but around 10am on Monday I got hit with a mac truck and was running a fever of 101. It's not swine flu so don't worry.

But to the markets! Once again its the same shit different day. Look at that, oil and commodities lead that market. Shocking really, this never happens. Oil rallies on the 30th and the market follows a few days latter. This has been the trend since March. The market celebrates high oil prices. Now just wait for finanicals to top and oil to move back down again and whammy another "correction".

Oil is nearing resistance though and may start to pullback if it can't break above 72.00, which is the down trendline which started it's decline. The PnF chart shows this better:

As I talked about Sunday night the market bounced off the 1019-1022 level. Looks like buy the dips is still in play.

The bears were to get the market to close below the key 1055 level, the small downtrend from 1070 is still in tack.

On the daily chart, the new move up is testing the bottom of the trendline that was broken and testing the down trendline.

I don't see any clear edge to enter a trade right now, hourly the market was slight overbought and may drop a little from here, but the daily is slight out of oversold territory and MACD may be turning up. It is better to take plays at different stocks when the market is showing no edge. Check later for a list of possible longs.


Lastly I will like to introduce to a trading product that is just amazing. I introduce you to Retracement Levels. (RL's) The RL's are a great trading system that provide a trader the best odds to entering and exit trades. Don't believe me?

One reason I was so sure there was going to be a bounce at the 1020-1019 level by combining my analysis of the up trendline, the 1022 support of the 200 monthly MA and the oversold condition, with the RL's.


Here is were their "Go Long Levels" on Oct 2nd. The best go long was at 1019.64 with a 79% chance of a reversal at these levels. The low on Oct 2nd was 1019.95.

Just to show you that the RL's are not one hit wonders. Here was the "Go Short odds" on Sept 29th.

Using the RL's with your own trading system really enhances your odds of entering the trade at the right price. Check out their site and review the product. Trust me its a great trading product.