Wednesday, February 24, 2010

DJIA 240 minute chart

 DJIA 240 minute trend model

This the 240 minute chart of the DJIA.  The horizontal blue line is an auto-resistance line generated by Advanced GET.  It works well for both Short-Intermediate-Major resistance levels and it already has worked to some extent this time.


Allan said...

By now it is no secret that I am using price levels via the Trend Models to determine what side of this market I want to be on. Nor is it a secret that Robert Prechter and his EWI brain trust believe that the stock market is on the cusp of a precipitous wave three of three of three down. These two very different trading systems are not inconsistent with each other, in fact, the beauty of trend following is that you will get all the benefits of the third wave collapse without having to identify it.

Ergo my point: The nature, extent, velocity and shock of a third of third of third down is just not yet present. Like pornography, we will know when we see it. Any one of these short-term Sells could lead into one, but for now, the absence of any downside fireworks is a tell that something else might be happening.

Naturally, this analysis is subject to change, as are the markets.


Anonymous said...

Can you provide a list of the TOP ETF's you trade?

Anonymous said...

And, do you look at certain ETF's as leading indicators, such as, copper etf - JJC??

Allan said...

There are certain ETF's (which I have discussed on the email list) that I think offer outstanding opportunities in various time frames and sectors. Among them are EDZ, TZA and FAZ. I also monitor and sometimes trade VXX for reasons I've explained in prior articles.

This window of noise we are in now is frustrating, but there are certain levels that will ignite what I expect will be massive moves in these and other instruments. My confidence level is high enough for me to have started the email service on the first of the year.

There are no coincidences, or said another way, there is a method to my madness.


MMarino said...

I know you love biotech's. Can you take a look at AEN and tell me what you think?


Anonymous said...

Allan, you are a mad man !!!

Anonymous said...

The following quote is why I've been attracted to Allan's work like a magnet.

Jerry Parker on folly of predicting where markets may be headed:

"I don't know nor do I care. The system that we use is about the market knowing where it's going."