Market resumes uptrend after one-day slide

Stock indexes on the daily chart have been creating a pattern of gaps higher with sharp set backs every five or six days. The short-term trend is irregularly higher, but some momentum divergences are becoming apparent. To help smooth out the picture, I will turn to the weekly chart. You can see the double stochastic cycle overbought and in the area where it could easily roll over as price hits the longer-term moving average. This is a tough market to trade in real time. Of course, after the fact we’ll hear how well it has been traded by many gurus. From a sentiment point of view, it seems too many were expecting the rally to run out of steam, which was a reasonable expectation due to the extent of the run-up. But then the preceding down move has been rather exceptional as well. Maybe there needs to be more acceptance of this rally before a meaningful down impulse can begin. That is, a directional move with persistence of trend. I wish I had more to say.

I gave a lecture at a local trading group a few weeks ago on the Market Profile. I just uploaded the slides and recreated some of the commentary from the lecture. It is in the articles section of this blog, and titled Market Profile – A Primer (or you can just click the link).

I’ll try not to get started on politics, but did anyone really get annoyed at that idiotic comment made by Janeane Garofalo the other day regarding the tea parties? I know it is not worth it to expend any energy on these airheads, but some good came out of my frustration. I found an excellent web site in my effort to vent. It is called The Black Sphere and the article is called Racist Garofalo to the Rescue, and he has written his impression of the situation. It’s worth a read. It’s funny and correct, although not politically correct.

One thought on “Market resumes uptrend after one-day slide

  1. Yeah good link. I filed a complain with the FCC on several shows regarding the deliberate use of the sexual term “teabagging”. Cry as we like, though, policies are being enacted that will alter our history, so they have the last “laugh”. Wait till they see what they have done to themselves. They have no idea of the ramifications.

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