Market TAO Thurs 7-23-09

ES Futures overnight gave us this Pattern…. an Ending Diagonal …..a Reversal Pattern.

These appear at the end of a very strong rally signaling a reversal.

It’s not finished yet . Typically these patterns end with a spike over throw to the top and then fail that could happen today or tomorrow.

Still have my PUTS on from 2 days ago and will add more at the top op the spike…..use a tight stop because as crazy as this market has been it could just keep on going up forever! 😛

Apparently Mr Market decided this was an Ascending Triangle and we got a Big Breakout. 😮

Usually a Triangle is a Wave 4 Structure and and the top of the wave 5 happens very fast.

It looks like this maybe the end of wave 5 .

Now we should see an ABC Retracement down to the Apex of the Triangle

[tags]ABC Retracement, Ascending Triangle, Breakout, Ending Diagonal, es futures, reversal patterns, Triangle, Wave 4[/tags]

Neboxian’s Day Trade Journal Mon 7-20-09

This looks like a good place to put some Spy Puts on …..9500 with stop above 9550…..ES Futures is selling off and the Xl’s are all breaking down……

The Eaton Hal and Johnson reports were not good for the future guidance.

Top line Revenue continues to fall and just because they beat the street estimates doesn’t mean that is is good in to the next quarter.

All the reports so far including the ones last week say the out look is foggy.

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12:50 et pm…… Not doing any big trading today mostly waiting for true market direction…. I don’t think there will be much until aapl and cat report.