Monday, April 27, 2009

Trading Education from The Money Show

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"It Might Have Been a Better Day at the Fairgrounds"

"Zippin' Pippin Day on Wall Street - Sneak Attack Over the Hudson!"
2D, 10m. - Apr. 27 - There was a roller coaster morning followed by a "Crack Cocaine" afternoon in the market today.  The internals weak at the outset due to the Gap down.  This was followed by some improvement only to have it fall apart in the afternoon with increased volatility.  Contributing to the morning gyrations there was a False Alarm of an errant aircraft over the Hudson that led to mass evacuations and anxiety in New York.
20D, 2 Hour - Apr. 27 - There is another wedge to contend with but this time it is neutral not yet tipping its hand as to direction.   The Channel Trend remains up.  The market is running into significant resistance at this level and may end up going sideways as it "Butt's Head."
3 Month, Daily - Apr. 27 - This chart clearly shows the Resistance Line and the Collision Course the market is on.  It reminds me of the joke about the "Battleship Trying to Stand Down the Lighthouse."