Ok, just throwing this chart analysis up here for documentation if things go sour again. Remember, this is a weekly chart this time which means it might carry more weight to the downside should the pattern follow through.

Technical Analysis of Dow follows through

My last post was back on April 22nd where I posted two charts, one of the Dow weekly, and the other of the Dow daily.  I pointed out a significant pattern which seemed to be playing out in the markets. As you can see in the new chart, the market has given up quite a bit since I posted the original charts.  Here is how things have played out so far:

I'm not too sure about direction of the market after the mess we saw today, but I do know that I am not overly anxious to jump in on the long side again just yet.  Have a good evening everyone and good luck tomorrow.

Markets in trouble

Alright guys, I know I kind of fell off the boat there for a little while, but I feel like this is a very important post to put up.  Just read the charts and soak in what might be coming in the next week or so.  Of course you must realize, they bulls have been in the driver's seat for a year now and they have been making money, so as far as they are concerned, they might just drive the market on upwards.  Anyways, we'll have to wait and see.

Waterfall play today

Alright guys, here's a good pattern for you to learn, I call it the waterfall pattern.  Basically a waterfall is exactly what it sounds like, it is a hard sell off on good volume and you look for a bounce.  Generally these plays are better for quick scalps, but they can also reverse into a longer trend.

On this chart, CF, I bought in around 11:45 as those two bottoming tails touched the S3 line. A lot of times, you'll see a quick reversal and explosive move back upwards, but it just depends on the setup. This one gave a quick move, then slowly paced its way upwards all day.

Quick chart from this morning

Alright guys lets give this a shot here.  First post so show one of my favorite setups from this morning.  This play comes about as a stock gaps up, then retraces back some but doesn't break down. I look to play these on the break of the previous 5 minute candle's high.  As you can see in QCOM this morning, it gapped up, then put in three more candles all with lower tops. This also happened just as the price touched a pivot line which tells me there is resistance. So the play is to buy the break above the previous candle's high. As you can see, it worked out nicely. Something else to note on this one is the sell points. You're gonna want to take profits as it runs into resistance. Look how it stalled some at R2, then actually reversed once it reached R3, this is when you want to take profits guys, sell points can be just as important as buy points.