Friday higher

The Hoot 
Actionable ideas for the busy trader delivered daily right up front

• Friday higher, low confidence.
• ES pivot 1429.67.  Holding above is bullish.
• Next week bias uncertain technically.
• Monthly outlook: bias uncertain.
• ES Fantasy Trader going long at 1431.25..

Recap

Well things were looking good early on in Marketland today.  ES broke above its pivot at 4:15 AM and the Dow opened up nicely.  Unfortunately, it didn't last and all those gains evaporated in the afternoon to finish down 18.6 points, so my call was wrong, even though the SPX did finish higher, just barely.  But I think today's session gave us some more clarity and we will investigate that right now in the nightly chart run-down.

The technicals (daily)

The Dow: After two ugly triple digit down days, today's 19 point drop almost seemed like a victory for the bulls.  It was also a giant inverted hammer which while not the most reliable indicator is at least a reversal candle, unlike what we've been seeing the past three days.  I also note that the stochastic is now quite oversold, with the %K line at 8.59, lower than it's been since May.  I'd say we now have at least the makings of a reversal for the Dow but I'd still like to see some confirmation on Friday.  In any case, this chart now looks considerably brighter than it did 24 hours ago.

The VIX:  At least my VIX call last night was correct when I said "a lower VIX appears to be in the offing here".  The upper BB is like an electric fence to the VIX - one touch and boom, a 4.3% gap down today.  Unfortunately, this left us pretty much in no-man's land between BB's and in the middle of last month's congestion zone.  So while the stochastic is now jockeying to get into position for a bearish crossover, it's not there yet and this chart is not clear enough to call for Friday.

Market index futures: Tonight all three futures are up at 1:19 AM EDT with ES higher by 0.18%.  After giving us a spindly spinning top today, the new candle is forming on top of that and trading outside the declining RTC for the first time all week.  The stochastic is now just about to form a bullish crossover and more importantly at the moment, money flow and OBV have both turned higher

ES daily pivot: For the second time in a week, tonight the pivot is absolutely unchanged, remaining at 1429.67.  There's some positive news here because after a quick dip below right at the close, ES regained the pivot and then made no fewer than four attempts to test its support, all of which succeeded.  I view this as a positive sign.

Dollar index: Today the dollar gave us a near identical star to yesterday's candle on a 0.2% gap down.  That was enough to break out of a four day rising RTC for a bearish setup.    If the doji is confirmed on Friday, the dollar is likely to move lower next week.

Euro: After exactly touching its 200 day MA at 1.2832 today, the euro recovered to form a big bullish engulfing patter, big enough in fact to give us a bullish RTC setup.  And as a bonus, we just got a bullish stochastic crossover.  Although the euro is sort of wandering in the overnight, I'd say it's ready to make a move higher on Friday.  I'm just surprised that today's big move up was not reflected in our market today, though that may kick in tomorrow.

Transportation: After giving us a doji yesterday, today the trans delivered another potential reversal in the form of an inverted hammer, just like the Dow.  Today's small 0.11% loss clearly shows we now have a modicum of support right at 5000.  However, the RSI remains stubbornly overbought and the stochastic is still traveling lower, so no bullish signs there.  Another chart with little guidance.

Accuracy (daily calls): 

Month    right  wrong  no call  conditional  batting   Dow
                                            average  points

April      7      9      2                    .438
May       10      7      3           2        .632  
June       8      6      6           1        .600     632
July      11      2      6           1        .857     917
August     8      6      8           1        .600     -78
September  8      6      5           0        .571     -19
October    3      4      2           0        .429    -118


     And the winner is...

Last night I wrote here, " I think the pendulum is at least slowing down and getting ready to swing back the other way.  From the looks of it, I'd expect a move up by Friday.".  Tonight, I'm seeing nothing to change that opinion.  Whereas last week at this time the market was feeling toppy, tonight it's feeling bottomy (is that a word?)  Although it's not a perfect setup by any means, I'm willing to climb out on the limb and call Friday higher.

ES Fantasy Trader

Portfolio stats: the account remains at $182,500 after 66 trades (51 wins, 15 losses) starting from $100,000 on 1/1/12. Tonight, we're going long at 1431.25 on a trade than is not completely speculative but also less conservative than I've been lately.  I think that if it's not profitable tomorrow, it will be early next week.

CUA (Commonly Used Acronyms)

BB - Bollinger Bands
DCB - Dead Cat Bounce
MA - Moving Average
RTC - Regression Trend Channel
YTD - Year To Date

Disclaimer: (My lawyer made me do it) This blog is not trading or investment advice, account management or direction.  All trades listed here are presented only as examples of the author's personal trading style.  Investing entails significant risk and trading entails even greater risks.  Act accordingly.
 

Thursday higher if ES pivot cracked

The Hoot 
Actionable ideas for the busy trader delivered daily right up front

• Thursday higher if ES pivot broken over.
• ES pivot 1429.67.  Holding below is bearish.
• Friday bias higher technically.
• Monthly outlook: bias uncertain.
• ES Fantasy Trader standing aside.

Recap

Today the Dow took a dump to the tune of 129 points.  Surfing the daily wave of network nattering, I'm discerning a whiff of panic in the air, the being October, of course.  So is this the Big One?  Is the sky falling and the world about to end?  Or is this just another pullback like we've seen nine times already this year?  The answer is in the charts, which we will now grill until they spill their secrets. 

The technicals (daily)

The Dow: Let's start by giving the third degree to the Dow.  Bad Dow - no profits!  In fact, today's big dive broke support at 13,320 and then marched straight down through the lower BB at 13,383.  The only thing that stopped the free fall was the closing bell, at 13,345.  This big red marubozu also gave us a bearish RTC trigger.

And even after today's losses, we're still not quite down to oversold on the indicators.  The only positive note here is that we remain in a wider rising RTC going back to June 12th.  If the Dow falls under 13,261 tomorrow, we'll fall out of that one too and that would be bad indeed.  For my money, that's the Dow's last stand.  Nothing really cheery on this chart.

The VIX:  On the other hand, here's something interesting.  While the market  plummeted, the VIX also fell today.  While the drop from yesterday's close was small, the candle formed a decent spinning top that just nearly touched the upper BB at 16.83.  And RSI turned lower today too.  That makes three reversal signals.  I'd say a lower VIX appears to be in the offing here.

Market index futures: Tonight all three futures are mixed again at 1:37 AM EDT in a narrow range with ES lower by 0.04%, YM down 0.05% but NQ up 0.06%.  The past three days of losses have moved ES very nearly to oversold while the stochastic is already quite oversold and getting into position to start a bullish crossover.  ES also touched its lower BB at 1423 earlier this evening before bouncing off.  But we saw this sort of doji action at this point last night and it did not end well.

ES daily pivot: Tonight the pivot tumbles from 1441.92 to 1429.67.  With ES virtually flat in the overnight, so far at least, that now puts us less than four points below the new pivot, within striking distance.  We'll need to see ES break above this number to have any hope of closing higher on Thursday.  Until then, it's bearish.

Dollar index: Despite the market's fall today, the dollar was essentially flat on a perfect doji near the top of yesterday's run-up.  This could signal a move lower but requires confirmation.

Euro: In further unusual action, the euro actually moved a little higher today forming a hammer.  The new candle is forming another hammer that successfully tested the 200 day MA at 1.2831 before rebounding to 1.2872.  With support at the 200 MA and more support from last month around 1.2850, it's possible the recent euro sell-off is nearing an end.  The stochastic is moving into a position to begin a bullish crossover, possibly on Friday.

Transportation: Today the trans actually gained 0.13% on a wide-ranging doji.  This could signal a reversal coming, but with the stochastic just completing a bearish crossover and RSI still overbought, we'd need some confirmation before declaring the trans going higher.

Accuracy (daily calls): 

Month    right  wrong  no call  conditional  batting   Dow
                                            average  points

April      7      9      2                    .438
May       10      7      3           2        .632  
June       8      6      6           1        .600     632
July      11      2      6           1        .857     917
August     8      6      8           1        .600     -78
September  8      6      5           0        .571     -19
October    3      3      2           0        .500     -99

     And the winner is...

After three big down days, I think the pendulum is at least slowing down and getting ready to swing back the other way.  From the looks of it, I'd expect a move up by Friday.  But that leaves Thursday.  There's still no immediate sign of a reversal on any charts tonight so I'm going to make a conditional call: if ES breaks above its pivot of 1429.67 by 10 AM, we'll close higher, else lower on Thursday.

ES Fantasy Trader

Portfolio stats: the account remains at $182,500 after 66 trades (51 wins, 15 losses) starting from $100,000 on 1/1/12. Tonight, we stand aside again.  I completely missed this current downward move and I'd hesitate to jump on board this late in the game.  By now, the risk/reward already favors a move higher rather than continued lower.

CUA (Commonly Used Acronyms)

BB - Bollinger Bands
DCB - Dead Cat Bounce
MA - Moving Average
RTC - Regression Trend Channel
YTD - Year To Date

Disclaimer: (My lawyer made me do it) This blog is not trading or investment advice, account management or direction.  All trades listed here are presented only as examples of the author's personal trading style.  Investing entails significant risk and trading entails even greater risks.  Act accordingly.
 

Wednesday uncertain, bias lower

The Hoot 
Actionable ideas for the busy trader delivered daily right up front

• Wednesday uncertain, bias lower.
• ES pivot 1441.92.  Holding below is bearish.
• Rest of week bias lower technically.
• Monthly outlook: bias uncertain.
• ES Fantasy Trader standing aside.

Recap

Well it sure looks like in trying to outsmart the market I only ended up outsmarting myself.  The Dow did not go up today, instead it plunged 110 points to end on the lows of the day.  Ugh.  Time now to regroup and see if we can do better for tomorrow.

The technicals (daily)

The Dow: I always hate to use the phrase "should have" here but tonight it fits.  I should have paid more attention to the indicators last night and less to chart patterns that really required confirmation.  Confirmation which we did not get today.  In fact, the Dow dropped out of its rising RTC for a bearish setup and completed a bearish stochastic crossover.  With no support now until 13,400 this chart is looking decidedly negative.

The VIX:  Yesterday's gap-up doji was obliterated today as the VIX gained a hefty 8.34% on a green marubozu that took it just about to its recent resistance at 16.44.  It also completed a bullish stochastic crossover.  That said, the VIX is now just below its upper BB at 16.75.  .As I usually note, the VIX rarely spends more than a day or two at that level before retreating.  It will occasionally climb the upper BB for a number of days, but that mostly happens when the BB is rising.  And right now it's falling.  My best guess here is that we'll hit 16.75 on Wednesday and then move lower.

Market index futures: Tonight all three futures are mixed at 1:27 AM EDT with ES lower by 0.03%, YM down 0.13% but NQ up 0.05%.  Today's big drop in ES brought us about halfway to oversold on the indicators and also gave us a bearish RTC trigger.  However, the developing candle looks like a hammer which could be a reversal indicator, although I recognize that it is dangerous to read too much into half-cooked candles.

ES daily pivot: Tonight the pivot takes a big drop from 1451.50  to 1441.92.  This still leaves ES below the pivot, but by a lot less now than before.  We'll want to see ES break above the new number by morning, otherwise we remain bearish.

Dollar index: Today the dollar gained 0.56% rising right up to its recent resistance at 55.16 on the $USDUPX.  This move also gave us a bullish crossover suggesting continued upside if the $ can break resistance on Wednesday.

Euro: The blinkin' euro really faked me out by rising strongly last evening and then tanking right at 3 AM, shortly after I had gone to bed.  One hour earlier and I wouldn't have made a bullish call for this currency.In any case, today's loss brings us close to the euro's 200 day MA at 1.2832.  But there is also a support line just above that at 1.2850.  That was tested successfully earlier this evening.  If this pattern holds up, then there's a good chance the euro could find a bottom here and move higher on Wednesday.  But that's a really difficult call.

Transportation: The trans was at a crossroads yesterday.  Recall I pointed out the 50% Fib retracement.  That line proved too hard to beat and today the trans dropped like a rock, losing 1.14% and falling right out of a six day rising RTC.  This move also gave us a bearish stochastic crossover and caused a top in RSI at overbought.  The trans are clearly looking lower again on Wednesday.

Sentiment: Once again it's time for the latest weekly TickerSense Blogger Sentiment Poll.  We continue to track the poll to see how well it performs.  Here's the updated cumulative list for this year:

Wk.# Week   % Bullish  % Bearish  NightOwl SPX  Accuracy

  1  1/3        46         21        +     1258   1/1

  2  1/9        56         37        +     1278   2/2

  3  1/17       41         33        +     1289   3/3

  4  1/23       46         32        +     1315   4/4

  5  1/30       48         31        +     1316   5/5

  6  2/6        56         30        +     1345   6/6

  7  2/13       48         31        +     1343   7/7

  8  2/21       44         32        +     1361   8/8

  9  2/27       48         24        +     1366   9/9

 10  3/5        43         26        +     1370  10/10

 11  3/12       46         32        +     1371  11/11

 12  3/19       46         29        +     1404  11/12

 13  3/26       39         29        +     1397  11/13

 14  4/2        42         21        +     1408  11/14

 15  4/9        25         46        -     1398  12/15

 16  4/16       26         48        -     1370  13/16
 17  4/23       30         48        -     1379  14/17

 18  4/30       44         32        +     1403  14/18

 19  5/7        23         50        -     1350  15/19

 20  5/14       32         44        -     1353  16/20

 21  5/21       30         52        -     1295  16/21

 22  5/29       35         42        -     1318  16/22

 23  6/4        32         48        -     1278  16/23

 24  6/11       28         40        -     1326  16/24

 25  6/18       39         26        -     1343  16/25

 26  6/25       38         46        -     1335  16/26

 27  7/2        41         40        -     1362  16/27

 28  7/9        42         38        -     1355  16/28

 29  7/16       44         32        -     1357  16/29

 30  7/23       33         42        -     1363  16/30

 31  7/30       43         22        +     1386  17/31

 32  8/6        52         28        +     1391  18/32

 33  8/13       43         21        +     1406  19/33

 34  8/20       46         31        +     1418  20/34

 35  8/27       39         29        +     1411  21/35

 36  9/4        31         38        +     1407  22/36

 37  9/10       54         29        +     1438  23/37

 38  9/17       63         22        +     1466

 39  9/24       52         30        +     1460 

 40  10/1       39         39        -     1441 

 41  10/8       52         34        +     1461

Again, the SPX number is the closing price of the S&P on the Friday before each new poll comes out.  The "NightOwl" column is how I voted.  Since the poll is for 30 days out, after the first four weeks we're able to see how well we did.  This week we see that my bullish call on 9/10 was right again, the S&P now being higher than then. I'm using the column "Accuracy" to track my calls.  So now I'm 23 for 37  or 62%.

For the record, I switched my vote back to bullish this, based on my reading of the SPX monthly and weekly charts.  And it appears I had company, as the bullish reading jumped 13 points while the bearish reading sank five.  This puts us pretty much back in the same position we were in last month.  This particular forecast should be interesting, since one month from now we will (finally) have the elections behind us.  It will be interesting to see how the markets react.  If last week's debate is any guide, a Romney victory will be good for stocks, while a win by Emperor Nerobama will send the market lower.



Accuracy (daily calls): 

Month    right  wrong  no call  conditional  batting   Dow
                                            average  points

April      7      9      2                    .438
May       10      7      3           2        .632  
June       8      6      6           1        .600     632
July      11      2      6           1        .857     917
August     8      6      8           1        .600     -78
September  8      6      5           0        .571     -19
October    3      3      1           0        .500     -99


     And the winner is...

I'll admit that after being badly wrong today I'm a little gun-shy tonight.  But we're at a crossroads here right now anyway.  While the charts are all looking bearish right now, a lot of them are also right up against or very close to support or resistance lines that they could bounce off of.  That makes it likely that Wednesday could be a turn-around day.  Given that, I'm simply going to call Wednesday uncertain, but with a bias lower.

However, if ES manages to break above 1441.92 in the morning, that greatly  increases the odds of a higher close.  Sorry to be so wishy-washy but that's the best I can do tonight.  Maybe tomorrow I'll go get some Windex for my crystal ball..


ES Fantasy Trader

Portfolio stats: the account remains at $182,500 after 66 trades (51 wins, 15 losses) starting from $100,000 on 1/1/12. Tonight, we stand aside given the general uncertainty of things.

CUA (Commonly Used Acronyms)

BB - Bollinger Bands
DCB - Dead Cat Bounce
MA - Moving Average
RTC - Regression Trend Channel
YTD - Year To Date

Disclaimer: (My lawyer made me do it) This blog is not trading or investment advice, account management or direction.  All trades listed here are presented only as examples of the author's personal trading style.  Investing entails significant risk and trading entails even greater risks.  Act accordingly.
 

Tuesday higher

The Hoot 
Actionable ideas for the busy trader delivered daily right up front

• Tuesday higher, low confidence.
• ES pivot 1451.50.  Holding below is bearish.
• Rest of week bias lower technically.
• Monthly outlook: bias uncertain.
• ES Fantasy Trader standing aside.

Recap
After a sharp dump out the gate Monday morning, the Dow retraced in a pretty boring day, due no doubt to the fact that the bond market was closed due to the holiday.  (I still don't understand why bonds close for Columbus Day but stocks do not).  Anyway, with that out of the way, we can get back to business and check the charts for our next move.

The technicals (daily)

The Dow: Today's lackluster action in the Dow is nonetheless significant since today is historically quite bullish.  But I'm still hesitant to read too much into today's small hanging man due to the distortions induced by the holiday.  Suffice it to say that despite today's small loss and an overbought RSI, we remain inside the rising RTC, so this does not yet constitute a top.

The VIX:  I nailed this one last night.  The exponential move is always a very high reliability reversal warning.  And so today the VIX jumped 5.44% on a big gap-up.  But the candle was a small shooting star.  And sitting all alone up there, it seems to be begging to fill the gap.  And the futures are showing the same thing so tonight I'm thinking that the VIX could now move lower on Tuesday.

Market index futures: Tonight all three futures are up at 1:38 AM EDT with ES higher by 0.21%.  Today's drop in ES took us right to the edge of the rising RTC for a bearish setup, but that is not being confirmed in the developing candle.  In fact at 1453, we're right back to the RTC support line.  And although we have a quite overbought RSI and a now-completed bearish stochastic crossover, the chart is not behaving like it wants to go lower, so I'm wary about going short here.

ES daily pivot: Tonight the pivot drops from 1457.58 to 1451.50.  With ES trending higher this evening, we crossed above the new pivot right at midnight - and then sank right back down to it.  But then we bounced off.  This is happening as I write.  Holding above the pivot is always bullish, and successful tests of its support even more so.

Dollar index: Yesterday's dollar doji was confirmed today as the buck gapped up 0.24% to form a bearish evening star.  And a red one at that.  It requires confirmation, but I would not at all be surprised to see the dollar move lower on Tuesday.

Euro: The euro moved lower today as I expected but remained inside its rising RTC.  And it's now reversing again, having taken two sharp steps higher at 7:30 PM and again just after 1 AM.I think this has something to do with news coming out about Chinese banks easing, but in any event, I think the euro may continue higher on Tuesday, which would be good for stocks.

Transportation: An interesting divergence here - while all three major averages were down today, the trans posted their sixth consecutive gain, remaining firmly inside their rising RTC.  And Fibonacci fans take note - today's close of 5057 was almost exactly the 50% Fib retracement of last month's big dump.  I drew the lines and got 5056.16.   Amazing.  So without a candle reversal or RTC reversal in sight, I'd say the next stop for the trans is the 0.618 Fib, or 5095.


Accuracy (daily calls): 

Month    right  wrong  no call  conditional  batting   Dow
                                            average  points

April      7      9      2                    .438
May       10      7      3           2        .632  
June       8      6      6           1        .600     632
July      11      2      6           1        .857     917
August     8      6      8           1        .600     -78
September  8      6      5           0        .571     -19
October    3      2      1           0        .600      11
     And the winner is...

The situation is a bit conflicted tonight.  The indicators seem to be pointing lower but the chart patterns look like they could be setting up for a move higher, maybe not as a trend, but at least for one day.  So tonight I think I'm going to go with the candlesticks, bolstered by the news, the overnight futures and currencies, and call Tuesday higher.

ES Fantasy Trader

Portfolio stats: with a 3.25 point win today the account now rises to $182,500 after 66 trades (51 wins, 15 losses) starting from $100,000 on 1/1/12. Tonight, we stand aside.  I do think we have a good shot at a higher close Tuesday but it's by no means a sure thing.so I'm just going to take a pass on this trade.

Reminder, you can follow my ES trades live on Twitter @nightowltrader.  Since I was recently asked about this, let me repeat that these trades are all market orders, not limit orders.  This makes the execution process more fair since there is no question that they would have gone through.  Also note that I make the trade first, then post the tweet.  In the few seconds between those two events, the price of ES can (and often does) change.

BOT    10    false    ES    DEC12 Futures     1449.25    USD    GLOBEX    11:25:08   
SLD    10    false    ES    DEC12 Futures     1452.50    USD    GLOBEX    01:09:24   


CUA (Commonly Used Acronyms)

BB - Bollinger Bands
DCB - Dead Cat Bounce
MA - Moving Average
RTC - Regression Trend Channel
YTD - Year To Date

Disclaimer: (My lawyer made me do it) This blog is not trading or investment advice, account management or direction.  All trades listed here are presented only as examples of the author's personal trading style.  Investing entails significant risk and trading entails even greater risks.  Act accordingly.
 

Monday lower

The Hoot 
Actionable ideas for the busy trader delivered daily right up front

• Monday lower, low confidence.
• ES pivot 1457.58.  Holding below is bearish.
• Rest of week bias lower technically.
• Monthly outlook: bias uncertain.
• ES Fantasy Trader going short at 1452.50.

Recap

Well I think "uncertain" was a reasonably good call for last Friday with the Dow gaining 0.26% and the SPX losing 0.03%.  So far, October has not proven to be particularly spooky, but there's still three weeks to go.  So let's see where we might be headed as we wend our way towards the elections next month.

The technicals (daily)

The Dow: Friday's 35 point gain came on a bearish shooting star that nearly touched the upper BB and took us entirely out of the left side of the rising RTC which can sometimes be an early bearish sign.  The indicators continue to rise with RSI now overbought though the stochastic is not yet forming a bearish crossover.  This chart is now flashing a yellow caution light.

The VIX:  Meanwhile, the VIX posted a fourth consecutive decline but did it on a gap-down green candle.  This move now gives the VIX a pretty good exponential curve.  And just as exponential run-ups always end lower, a mirror-image move down will eventually go higher.  With the VIX now sitting right at summer-long support, I'd be looking for a reversal higher either Monday or Tuesday.

Market index futures: Tonight all three futures are down at 1:10 AM EDT with ES lower by 0.17%.  On Friday ES gave us a tall spindly doji and the overnight action so far seems to be confirming a top.  RSI has already topped at overbought and the stochastic is very close to a bearish crossover.

ES daily pivot: Tonight the pivot rises from 1452.50 to 1457.58.  This combined with the overnight drift lower in ES now puts us below the pivot by a good five points, a bearish sign.

Dollar index: On Friday the dollar formed a doji warning of a possible reversal higher on Monday.  We have now moved sufficiently down from the last rising RTC that a reversal is possible here.  A move higher in the dollar on Monday would not surprise me.

Euro: And the euro is supporting the idea of a rising dollar right now.  After putting in a doji of its own on Friday, it is now trading lower, down 0.35% already in the Sunday overnight and now below its daily pivot.  Also, its stochastic is just about to form a bearish crossover.  I'd say the euro's going lower on Monday which would be bad for stocks.

Transportation: And finally, the trans chart looks like the Dow - a shooting star following a rising trend off the left edge of the RTC with overbought indicators.  Another sign of impending reversal, possibly though not necessarily on Monday.

Accuracy (daily calls): 

Month    right  wrong  no call  conditional  batting   Dow
                                            average  points

April      7      9      2                    .438
May       10      7      3           2        .632  
June       8      6      6           1        .600     632
July      11      2      6           1        .857     917
August     8      6      8           1        .600     -78
September  8      6      5           0        .571     -19
October    2      2      1           0        .500     -16
    And the winner is...

Tonight we've got a bunch of dojis on a bunch of charts suggesting reversals.  Things are really starting to look short-term toppy to me.  I'm just not feeling the love.  Without any major economic news coming out on Monday to juice the market, it's looking like we may finally have a day that's more technically driven than news driven.  If that holds, my expectation is that we'll see Monday lower.

And I'm really going out on a limb saying that, since Columbus Day is historically quite bullish.  I just think that if Monday was going to go with the historical trend, we'd be seeing more positive action from the currencies and futures in the overnight.

ES Fantasy Trader

Portfolio stats: the account still remains at $180,875 after 65 trades (50 wins, 15 losses) starting from $100,000 on 1/1/12. Tonight, we go short at 1452.50.  I'm thinking that if this trade is not profitable on Monday, it will be by Tuesday.  In any case, after not trading once all last week we finally have a chart where the risk/reward ratio seems favorable to putting on a trade.

CUA (Commonly Used Acronyms)

BB - Bollinger Bands
DCB - Dead Cat Bounce
MA - Moving Average
RTC - Regression Trend Channel
YTD - Year To Date

Disclaimer: (My lawyer made me do it) This blog is not trading or investment advice, account management or direction.  All trades listed here are presented only as examples of the author's personal trading style.  Investing entails significant risk and trading entails even greater risks.  Act accordingly.