Monday, February 2, 2009


Bear Day 3 - "What's for Dessert?  This is a real picnic.  Where'd all the Bulls go?"
1D, 5m. - Feb. 2 - Take note of the divergence between the market action and the MACD.  This was a nice signal to go long on the "JA" play late in the session.  A full point was easily gained.  Otherwise it was a sideways day following two days of bearish decline at the end of last week.  A sideways day following two down days could mean another decline on Tuesday.
10D, 30m. - Feb. 2 - This was the third day of a Bear Potato.  The close was within the "Devil's Den (zone of temptation)."  In fact it closed right at the 20D MA which leaves us in suspense about tomorrow.  Where the market opens will be very interesting.
20D, 60m - Feb, 2 - Three Potatoes are seen on this chart.  Take note of the duration of each.  In a bear market the Bear Potatoes tend to be longer than the Bull Potatoes.
3M, Daily - Feb. 2 - The Daily chart continues to show a Primary bearish trend and this needs to be kept in mind all the time.  There is an important primary support level at near 80 and another at 74-75.