Use Your X As Well As Your Y: Part 2 Of 2, SPY: Follow-Up
In Part One I said I would show you an hour chart. I changed my mind and decided to use a 30 minute chart because the items I wish to show you are more visible. Using the disciplines of TRADE-MAP, and having the knowledge of a Fibonacci time cycle coming April 18th, I place emphasis on the distribution of shares in SPY (top vortex indicator, top phase energy indicator), as well as the jaws, teeth, and lips of the alligator that are CLOSED. The thick red conversion line of the Ichimoku Cloud has crossed the thick black Ki jun-Sen Ichimoku Cloud baseline HEADING LOWER. The weight of the evidence suggests lower prices. I currently own SH (the inverse of SPY), DOG (the inverse of DIA), and RWM (the inverse of IWM). In my opinion, large caps are over-bought. Why? The S&P is near a high, but the Russell 2000 is at 1130, about 13% off its all-time high of 1296. The broad market is still lagging. Yes, it could catch up, but I think the path of least resistance is DOWN.
And let's not forget that the markets can easily move 1000 points in a day; and this is what scares me. Think about this: If we have a flash crash how can you flash cash? (Study. Prepare).
I use the TRADE-MAP approach when I look at financial instruments. Here are the letters and what "TRADE-MAP" means to me (first the letters in TRADE):
1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
Now the letters in MAP: 6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance.
I try to study the markets and I try to trade accordingly.
I guess Mark Twain said it best: "I am more concerned about the return of my money than the return on my money."
I also chart the markets because it is a challenge. I learned a long time ago to study, because:
"The difference between genius and stupidity is that genius has its limits." I hope this has been helpful and informative. May all your trades go well. Don.
And let's not forget that the markets can easily move 1000 points in a day; and this is what scares me. Think about this: If we have a flash crash how can you flash cash? (Study. Prepare).
I use the TRADE-MAP approach when I look at financial instruments. Here are the letters and what "TRADE-MAP" means to me (first the letters in TRADE):
1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
Now the letters in MAP: 6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance.
I try to study the markets and I try to trade accordingly.
I guess Mark Twain said it best: "I am more concerned about the return of my money than the return on my money."
I also chart the markets because it is a challenge. I learned a long time ago to study, because:
"The difference between genius and stupidity is that genius has its limits." I hope this has been helpful and informative. May all your trades go well. Don.
