Afraid to Trade Blog - Latest Comments in Hewison Video Asks Has the SP500 Broken Support?

Re: Hewison Video Asks Has the SP500 Broken Support?

Dan de Man — Tue, 03 Nov 2009 17:05:05 -0000

Looks like the VIX is rolling over...

Re: Hewison Video Asks Has the SP500 Broken Support?

terlyn — Tue, 03 Nov 2009 15:49:54 -0000

I see a triangle pointing up on SPY from yesterday. Could break to the upside?

Re: Hewison Video Asks Has the SP500 Broken Support?

terlyn — Tue, 03 Nov 2009 15:15:04 -0000

Looking at SPY year to date, if we are seeing a rounded reversal, it hasn't made the second bump yet to bring the sellers outweighing the buyers. Also, yesterday was a positive doji and today couldl be a bullish engulfing pattern as of 3:14pm. This could change by the end of the session.

Re: Hewison Video Asks Has the SP500 Broken Support?

Dan de Man — Tue, 03 Nov 2009 13:59:27 -0000

Yes I have to agree with you; I also try to be neutral in my trading. And its very frustrating to not have some real panic selling to make it a safer long. I like going long and short but the stochastics are starting to point up but as we all know anything can happen.

Re: Hewison Video Asks Has the SP500 Broken Support?

Corey Rosenbloom, CMT — Tue, 03 Nov 2009 13:47:14 -0000

Ouch - another one? I try to be neutral biased in my intraday trading, but just have to wonder like 95% of the rest of the trading community when a sell signal will actually 'work.' I've never seen anything like this.

Someone on TV described it as cramming for a college exam and drinking lots of coffee to stay up late all night. After the exam is over (hopefully not during the exam) ... you crash and the after affect was worse than if you'd just gone to sleep a little late instead of pulling an all nighter.

Re: Hewison Video Asks Has the SP500 Broken Support?

Corey Rosenbloom, CMT — Tue, 03 Nov 2009 13:44:27 -0000

The way the market has been making minor wave patterns up and down, there's definitely ample reason to believe that will continue.

In that event, a break of a head and shoulders pattern - akin to what we had in June - will be a powerful (and obvious) sell signal.

But will it fail just as miserably as the July trigger short? That's why I feel the 1,000 area is of utmost importance to watch.

Re: Hewison Video Asks Has the SP500 Broken Support?

Dan de Man — Tue, 03 Nov 2009 13:42:28 -0000

I vote bear trap. One option for safe trading is scaling in. Half now and half when and if we break the 10 day ema or 3/10 crossover.

Re: Hewison Video Asks Has the SP500 Broken Support?

terlyn — Tue, 03 Nov 2009 13:28:28 -0000

I vote for the second option...head and shoulders.