Track the Market

"Avoid Train Wrecks - Keep the Cars on Track"

5D, 10m. - Apr. 24 - Compare this Chart with Thursday's.  We got a dramatic break out from the Wedge formation to the upside.  The market has remained in the Channel Trend Line (Railroad Tracks).
20D, 60m. - Apr. 24 - The Channel remains Bullish with the market price at the center line.  The Moving Averages are Bullish.  A pull back may be expected given the gap and trend to the upside on Friday.
3M, Daily - Apr. 24 - The market is still in a secular long term Bear Market.  Currently there is a Bear Market Rally.  At this time there are no signs of slowing down the momentum to the upside.  The Wedge formation, however, suggests a Monday morning pull back.  The odds are that the market should remain inside the Channel.

As the market opens it pays to watch the action of the first several 5m. candles.  Let the market show its hand.  Watch the internals (UVOL/DVOL & ADs).  Pay attention to the MACD and CCI for trend indications and confirmation.

Sometimes a Wedge Gives You an Edge

"Is There a Wedge in Your Life?" - Go: www.chartpatterns.com

5D, 10m. - Apr. 23 - Compare this chart with yesterday's.  The Session closed inside the wedge or pennant that was drawn last night.  It just goes to show how trend lines and channels provide consistent yard lines to live and trade by.  You cannot play football and baseball without sidelines, yard lines, and baselines.  You cannot trade without close attention to the tools of the trade.

Today's session did not offer a lot of trade opportunities.  The internal were weak and the price action was choppy.  Days like this remind us that at times we need to sit on the side, be spectators, and wait for a better opportunity.  If you did well today, more power to you.  Sometimes, though, the best trade is "No Trade".
20D, Hourly - Apr. 23 - The Wedge and Channel continue to dominate this time frame.  The SPY is in the Devil's Den or Zone of Contention between Bulls and Bears.  Neither has retreated nor claimed victory.  The shape of the wedge displays a slight bias to an upside breakout.
3M. Daily - Apr. 23 - Bullish Channel prevails.  On the other hand the MACD is in decline and the CCI has receded to the zero line.  

The main lesson here is that we need to pay attention to the Big Picture even as we make trade decisions in very short term  time frames.  In the end all of the short term decisions made in the market make up the composite of longer term results.  Everyone has to decide what indicators and parameters work for them.  All of this is a continuing learning experience.

Your observations and comments are welcome.  This is not a political forum and comments of that nature will be rejected by the editor.