The home of the innovation of the Logarithm of Time as applied to the Markets.
We also watch for and correlate with major Bradley dates and Fibonacci Time and Price sequences.
Mark: $COMPQ(87) and $TRAN(09) do match up quite well. Author says watch for break below support (approx. 3656).
I did notice something interesting, and that was the distance between the $TRAN and 200-dSMA, at the time when the $TRAN started dropping (Oct 21). Price was at 4066 and MA at 3258. It was 25%. Trader's Narrative $SPX - has had some articles saying when that difference is 20% or over, which is rather rare, price will decline over the short term - 3 mons., but back positive after 6 mons. $SPX 8/13/1987 was one of the 'outlier's points in their article. $SPX was 18.83%. Whether the $TRAN is representative enough to fit the 20% category? http://www.tradersnarrative.com/what-happens-this-far-above-the-200-moving-average-3007.html#more-3007
Mark: Another subject - GAPS Marty Chenard has an example today: http://www.stocktiming.com/Monday-DailyMarketUpdate.htm The gap down occurred Oct 3-6, 2008, and was just filled Oct 15, 2009. His point is that, since the gap has been filled, SPY has not been able to break above that gap.
My question is a bit different - why are they so hard to fill? In a gap down: * I assume that not many shares were bought during that gap period, that investors are holding? * assume there is no psychological barrier?
2 comments:
Mark: $COMPQ(87) and $TRAN(09) do match up quite well.
Author says watch for break below support (approx. 3656).
I did notice something interesting, and that was the distance between the $TRAN and 200-dSMA, at the time when the $TRAN started dropping (Oct 21). Price was at 4066 and MA at 3258. It was 25%.
Trader's Narrative $SPX - has had some articles saying when that difference is 20% or over, which is rather rare, price will decline over the short term - 3 mons., but back positive after 6 mons.
$SPX 8/13/1987 was one of the 'outlier's points in their article. $SPX was 18.83%.
Whether the $TRAN is representative enough to fit the 20% category?
http://www.tradersnarrative.com/what-happens-this-far-above-the-200-moving-average-3007.html#more-3007
Mark: Another subject - GAPS
Marty Chenard has an example today:
http://www.stocktiming.com/Monday-DailyMarketUpdate.htm
The gap down occurred Oct 3-6, 2008, and was just filled Oct 15, 2009.
His point is that, since the gap has been filled, SPY has not been able to break above that gap.
My question is a bit different - why are they so hard to fill?
In a gap down:
* I assume that not many shares were bought during that gap period, that investors are holding?
* assume there is no psychological barrier?
But why is it so difficult to fill that gap?
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