10 Responses to “Follow the Bouncing Ball”

1. stringm says:

   July 9, 2010 at 7:47 pm

   I passed, counted the 16 passes. Saw the added attraction, also. Must be the Keystone!
2. stringm says:

   July 9, 2010 at 7:55 pm

   http://i31.tinypic.com/hvcsxd.jpg

   http://i30.tinypic.com/uo39z.jpg
3. stringm says:

   July 9, 2010 at 8:02 pm

   I just wanted to see if I could get them posted, looks like I did. I don’t want to imply I know poop from Apple Butter, I just wanted to show what I was looking at to put on the SSO trade. I have been thinking more and more about George’s comment about the lower time frame pushing up the upper time frame. I am starting to agree, with the caveat that the upper has to be in a position to be pushed up. I will follow through with my thoughts sometime this weekend. Promise not to post a million times in a row. Hope everyone has a wonderful weekend.

   String
4. stringm says:

   July 9, 2010 at 8:08 pm

   Ok I lied, I jumped to conclusions, I watched it through to the end. I failed as well! No more posts I swear!

   String
5. George says:

   July 10, 2010 at 10:41 am

   That video was tough. I failed. Not as tough as watching multiple screens of charts; I don’t even want to know how much stuff I miss on those.
6. George says:

   July 10, 2010 at 3:29 pm

   Stringm,

   RE: “I have been thinking more and more about George’s comment about the lower time frame pushing up the upper time frame. I am starting to agree, with the caveat that the upper has to be in a position to be pushed up.”

   EXACTLY! That’s how it works. That’s the only way it can work IMHO.
7. 2thfixr says:

   July 10, 2010 at 4:29 pm

   Agree String and George…as the lower time frames push or pull, the longer time frames follow after enough cycles. The shorter time frames (5 and 15 min) are showing marked MACD and RSI divergences, the 60-min stochs have reached very overbought territory (94!), chart pattern is starting to look like an Ending Diagonal/Bear Flag, heavy resistance areas all over the place around current price (but especially above it), so I’m starting to accumulate short position. I can certainly see that SSO has some more room to run up (4-5 points a day this week up to opex will get it to 1100 again). We’ve baked in a decent earnings season without really hearing any positive earnings announced yet! Notice how Family Dollar (or was it Dollar General) dropped 7+% on an UP day this week because they didn’t see good comps going forward? If those discount stores aren’t looking at revenue growth, who is?

   I also think there are external “problems” in this world that may trigger a waterfall event to lower stock levels–pick your poison: EU debt crisis, poor revenue announcements/future prospects during earnings period coming up (we are still watching for revenue growth, right?), a nuclear Iran, flash crash part deux, poor US bond auction (this upcoming week is loaded with them) and/or manipulation of bond prices to help primary dealers book an instant profit–gotta get people to bid up prices, they do that when they are scared–, almost ANY act of Congress, BP can’t cap/control the oil spill after all but guaranteeing it will be by Monday, etc…
8. stringm says:

   July 10, 2010 at 5:44 pm

   Tooth

   I agree with everything you said. Make no mistake, I did not buy SSO because I am a long term Bull. I bought because it made a double bottom on the 60M chart. The day it gapped up and then fell all day until right before the close I bought a little, just on a hunch. The hunch was it was trying to cross magor resistance. One of the ways the big boys can move above resistance is to solicit the help of a few trapped bears. So they gap it up let it fall, more bears added, next day gaps up, and they have a bunch of bears covering as well as them pushing up. Neat if you have sold a bunch of Puts the week prior, and want to make them harmless. I might be all wet in my thinking, but I have a profit right now so I don’t care!

   The next day when it cleared George’s 36MA I bought a lot. I also have added in small increments. If you look at the 60M and daily charts I posted you can see that all the indicators I watched moved across when the 60M crossed the 36MA and started to run. Things are all pressed against resistance, so as George says, it will be the tell of the tape, and it will be soon.

   I have observed that if the daily indicators are not in a position to cross and the price on the 60M crosses up the 36MA, it is likely to fail. I am still gathering info, and have much to learn.

   String
9. 2thfixr says:

   July 10, 2010 at 7:04 pm

   Just don’t overstay your welcome String.
10. stringm says:

    July 10, 2010 at 7:40 pm

    Tooth

    I know I am doing a contratrend play. I will be on my tippy toes. The Long MAes on the daily are going down. The 60M is strained to the upside, but that is where rallies go.

    String