Tuesday, November 16, 2010

Is eight enough?

Eight is a core Fibonacci number (aren't they all?) as well as the number of hours in a typical work day in the colonies.  These eight-hour trading models appear to work well in bridging the gap between shorter-term and intermediate term trend models.


DJIA 8 Hour AllanTrend Model


VXX 8-Hour AllanTrends Model

If these two new signals hold, it would appear that an Intermediate term reversal is at hand.

A


"All in all, just another brick in the wall."
                                  -Benjamin Disraeli

10 comments:

Anonymous said...

Yes..

I would urge all to join Allan's trade signals...

And to top if off..NNVC is doing very nicely...

Anonymous said...

What's the difference between the daily and the 8 hour?

Anonymous said...

the daily is only 6.5 hours, hee hee hee

Anonymous said...

Perspective
(my perspective)

S+P topped at 1227....a double top with the april high at 1224

technical traders see this as a sell zone and thus theres no surprize to see the sell off taking place now.(and the POMO team has allowed it )

Today and the better part of this week has been panic selling.

but through this panic selling select stocks and sectors have been doing well ,breaking out and up.

some biotech ,which has been stagnant all summer and fall

like NNVC and ISCO.

BTX is also doing well the last several days.

and INO broke thru resistance at 1.30 today.very bullish.

Gold and silver miners having been soaring in recent weeks are selling down now. not a crisis for panic selling,if you understand these come with high volatility.

The market is demonstrating its first wave down off the 1227 high.

Thats not a sign for panic selling. It may (or may not) be the first wave of an ABC correction

wave A down could stop here at 1170 area or slip in a 5th subwave to the 1165 support area and reverse into wave B to retest the gap at 1195-1200 area.
wave C could resume the down correcting pattern to target the MA's around 1150-1140-1135 support area

That would be a nice normal correction from where market could reverse back uptrend going into the holiday season.

How quickly all this could play out is a key factor because its mid- november already and christmas retail season is coming soon. The POMO team needs to jump on the gas pedal pretty soon if they want to resume the uptrend.

I see a bit more downside in this correction playing out,with some nifty stick saves that we've come to see happen before(like the 3 at 1040 in august)
and up goes the market.

The important 50 MA is now at the 1165 area where there is strong support.

If you have been watching the gaming,the engineering, of these markets for the last year (or longer)
you've been seeing them create/establish an uptrending market since the march 2009 bottom.

Why the sheeple investors and traders are always so prone to panic sell at every major and minor top....has to be psychological...trauma left over from the 2008 collapse and burn. they are burn victims.

I am impressed with the governments ability to prop up the market and keep it going like they have.

Ask yourself this question....Why did the market "top" at 1227 ??
whose idea was that ?
How perfect was that precise price point ?

(and back in the summer, when we were all nervous watching the market fall,did you EVER imagine the market would rally back to reach and even surpass the april high??

Everyone was thinking 'market collapse'
market collapse at S+P 1100.market collapse at 1120,market has to collapse at 1150,wait,1160,no wait some more at 1180....oops,ok I have no idea. well, look at that... market went all the way back to the april high.
Whose idea was that??

Does a real market move with such precision stop and turn around ?

Look at a short time frame chart of the S+P and see how precise the trendline draws across all the recent highs as this current wave down has played out. Does a real market price action move this precisely ?

or is there a wizard behind the curtain?

I believe in the idea of a wizard....and I'm counting on him and the POMO team to come through with the next happy stick saves (maybe at the 50 MA) and give the market a boost back uptrend into the holiday season. (unless They Dont want us to have a happy holiday consuming retail season....why would they want to dissipate the market before xmas instead of waiting until january ?)

and I believe in santa and that there is nothing that should prevent the wizard from exercising this power to move the markets as he has done since march 2009 or who knows from since when.

Maybe some day, the wizard will lose his market moving power. But Ive yet to see evidence of it.

so far

Anonymous said...

Allan,
Considering coming back to the simplicity of your models. Especially with the new website and extras you mentioned. A few questions:
Do you still cover sectors (biotech, gold, etc)?
Special situations stocks ? ala NNVC
To be frank, one issue I had with the service was the constant "bear commentary". I found myself fighting the psychology of "here comes the BIG one" commentary and trying to objectively follow the models. Is there more of a "it is what it is" approach to the price action ?
Thanks for your time....

Mike said...

re: "and I believe in santa"

good post...

let the algo do the work.

-Mike

Allan said...

The system is purely objective, the commentary a stream of consciousness, both are put out there for profit and/or amusement, you choose which fits best.

Anonymous said...

beautifully said ...

trade with the model, that is what you paid for the subscription ...

the prediction is for entertainment purpose only !!!

Anonymous said...

anyone hear of theis company ? i got an e-mail pumpnig it on monday this week...............did a little research on what they do....novel idea right before Xmas. i bought 5000 shares @ $1.09........having a good run on increasing volume last three days.
i suspect it was a pump and dump e-mail, but the product is interesting. any input from here is appreciated.

Anonymous said...

oooops............for got the name.

HHWW
Horiyoshi Worldwide

intersting "Fad".... who knows
i asked a 20-something employee of mine if she had heard of "True Religion", and their jeans, and she said yes. also had heard of the "tatoo-T-shirt idea".