It should be a pivotal week
- Posted by admin
- on September 3rd, 2012
Readers of our stream will recognize the following chart: it was our road map for all of August and one that we have posted throughout this summer at least a dozen times. It’s rare to see a market respect the standard deviation 1 line as well as this one has for August. Couple things to note:
Yellow highlight is market riding up the standard deviation line in which you are in “milk it” aggressive mode; orange highlight represents when market finally broke the trend and we shifted to more conservative strategy; the red highlight is what happened on Friday which is very interesting. We found support on the lower standard deviation 1 line, but stalled at the upper standard deviation 1 line. The next move through this crossroads will likely decide the future of the intermediate move.
Click to enlarge:
All this interpretation is also confirmed by the moving averages — note how we closed right back on the ascending 20sma on Friday.
Re-test of breakdown, or re-mount of upward slope SMA? Again, pivotal week. Summer is over boys and girls; time to bring back A game to the desk.
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- Keep swimming but with an eye on the shore
- Make peace with not catching every move
- 21 days and counting
- Trade against it
- What’s your edge?
- Wait for it
- Keep Calm and Carry On
- Even if you don’t trade it, you have to watch it
- This is where we would buy AAPL
- No matter what your time-frame, be patient enough to trade against an edge