Follow the Cat into Midstream & Set the Hook!

Playing to the Behavior to the Prey is Part of the Sport

2D. 10m. - Apr. 28 - The SPY opened in the lower range of the Channel.  The Trend is up.  The first candles were up and the internals improved.  The MACD was trending up.  Call position was taken with anticipation of Gap Closure and movement to the centerline of the Channel.  Note the High Hockey Stick in the CCI that signaled to Sell Point.  We will call this the "Channel Cat Play."
10D, 30m. - Apr. 28 - The trade was followed on a longer term chart to maintain perspective on the overall strategy and market environment.  
3M, Daily - Apr. 28 - The Channel Trend is still up but the resistance lines are plainly visible.  The past week has been a sideways meandering.  A Breakout above or below these lines could be important indicators as to where the market goes from here.  Notice that the MACD is "very quiet which often precedes a breakout as in the Sleeping Tiger Play.

A Day of Ups and Downs

"Who's in Charge of Punchin' the Buttons Anyway?"

5D, 10m. - Apr. 22 - It is a good thing to have a plan in mind as to how to approach the market each day.  The prior days highs and lows are important landmarks.  The Major Trend is very important.  Channel Analysis can be very helpful in avoiding trades that are "swimming upstream."  The Major Trend today is up and the SPY is in the lower level of the Channel.  It would make sense to look for a "bounce" off support.  This is exactly what we got, and the move was supported by progressively improving internals, a rising MACD  & CCI.  The market ran into Resistance on two occasions and dramatically fell back to support near the end of the session.  A nice profit, however, could have been made during the session assuming a disciplined exit.
20D, Hourly - Apr. 22 - Trading with the Trend can be the safer way to trade and is quite logical.  Yes, there are counter trend trades that are often profitable, but the odds of success are lower.  Use of Channel Check Analysis is a good basic strategy especially for swing trades over a two or three day period of time.  Establish a Channel that makes sense and note the higher resistance and lower support lines.  Consider appropriate trades and use stops to exit if the market goes the wrong way.  The market has a mind of  its own and we cannot tell it what to do.  Not every trade is a winner.  Albert Puhols does not get a hit on every "at bat" and we can't either.
3M, Daily - Apr. 22 - Longer term the Trend is Bullish.  We have had a minor downward trend for the past week with high volatility.  Use Channel Check Analysis and use Resistance and Support to help with trade decisions.  Get supportive data from the Internals, the MACD, the CCI, and the appropriate use of Moving Average Crossovers.  Technical Analysis is a blend of using Charts, Data, and Timing.  Trading is an Art and not simply a mechanical activity.