Feb. 22, 2005: TD

After close analysis:

Didn't trade today (was busy w/other things). Analysis from last week said we might retrace to neckline or go down, well we had both!! TD all the way (yeehaww!) after a morning gap down (a trap, how many times now has this happened?? that's why I like breaks in the afternoon rather than mornings!) and retracement to/above emas. The H&S on all indices played out correctly and now the market is definitely in a downward trend. Nice 2b0, 6bo (auto hit), then another 2bo setup: yummy yummy all money! Tomorrow I'm expecting a follow through on the downside with some retracement/cnsld.

Thought(s) of the day: added 2 things to charts that I want to track for a while. 150/200 threshold on Vold with 7bar pattern, and 60min recent hi/low on AB... also tried 90min... Looks like that DYO gives nice visual on higher highs/lows etc for bo setups. Yay, range study working :) I've also marked on charts the various spots where there were breaks.... I analyzed my trades and stats and looks like the 6bo and 26bo are the ones to play... will share findings with room later this week.

Market breadth -ve and quite strong. After morning cnsld and a lower open, Add, Addq, and Vold broke down. All 3 hit v. extreme levels!

Futures were in sync. AB and ES had a beautiful cnsld below their ema then broke down! I like it when bars curl around ema. NQ after a morning fakeout above ema also joined the party and provided nice confirmation for couple of entries. That ES200R chart is amazing: price hit resistance as it reached ema. All are below their emas.

Indices didn't do any better. SMH & SOX faked in the morning above their emas but soon reversed and went down w/rest of market. Will be interesting to see how they do tomorrow cuz they're right at apex! Usually some cnsld is required around that area before a major move happens and that's what I'm expecting. Dow didn't do any better and breached the 10630-50 area (very important). Translation: more downside.

Overall neutral day!