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.

"Battling Back- It is Just a Matter of Time"

Today we finally broke out of a protracted bear market that has been a slow bleed experience.  The Bulls should find encouragement.  Tomorrow will be interesting to see what kind of followthrough they have to support this move.
2D, 5m. - Mar. 10 - The most interesting thing today was the breakout above the Bear Channel that is now into its fourth week.  This was a clear break and signals a new Bull Potato.  When we started this series Potatoes last from 3-5 days up or down and that was consistent.  Recently we have experienced a protracted Bear Potato.  Perhaps we can resume the old pattern.  Notice the "anticipated symmetry" that helped with a late day successful trade.  This is a common intraday market behavior that can often be taken advantage of.  The "internals" need to cooperate and be on your side.

5D, 30m. - Mar. 10 - There was a clear breakout from the former Bear Channel (19 Day Bear Potato).  This move is "Central" to the Potato Trader theme of Moving Average Crossovers and Swing Potato Trading.  Intraday trades can be taken with more confidence if the underlying trend is appreciated.
10D, 60m. - Mar. 10 - New "Bull Potato" confirmed on Hourly chart.  There was a failure of this move about 10 days ago but that has been rare.  In general a new potato will prevail for several days or more.  There are no guarantees.
3M, Daily - Mar. 10 - The trend is obviously down but there was a "breakout" above the upper channel trend line.  The market remains below all major moving averages at this time.  More work needs to be done to establish credibility in this market.

Potato Peelings can be slippery.  Watch you step!

PT