Thursday, July 22, 2010

7/22/2010 Conflicting Time Frames

Good Evening Traders,

I'm Expect the volatility to continue into tomorrow because price is in a key area on many conflicting time frames right now. For instance, we just popped over the 50day MA on a daily chart with rising MACD histogram. Also, the 60 minute chart has a bullish histogram and upward sloping MA's. However the 15 minute chart is still somewhat bearish. MACD has turned down and the histogram is below the 0 line. Also there is a bearish divergence with stochastic making a lower low and price a double top today. Stochastic is also about to cross below 50. With Amazon stock down $12 in after hours we may struggle a little at the open.

I took a trade this morning when I shorted the pivot 1093.75. It was counter trend so smaller profit target. I got one point on two lots. entry was at price 1092.50 at time 10:54 am and exit at price 1091.50 at time 10:59 am. The 1200 tick chart was producing some great trades in the afternoon. A short at price 1094.75 time 3:21 pm which was good for 2 points and a long at price 1085.50 at time 3:39Pm which was also good for 2 points. The significant thing about these trades are that they occurred right where they are statistically most likely to work, at key support or resistance levels. Do your homework. or just copy mine ;)

I updated the 15 minute chart with new levels for tomorrow. There is a hidden resistance level at 1099.50 that doesn't show up because it didn't occur during cash hours. That is the overnight high that was touched three times during 7/14 and 7/15. Keep an eye out for that level. I think if buyers can get things moving early tomorrow they might be able to convince some shorts to cover and it could feed on itself. Or maybe someone will wake up and realize the economy is about to be in the toilet. Who knows, just trade what they give you. Good luck people


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