November 8, 2005: Chop

Nothing much to talk about ...basically the market chopped and once again breadth kept one from going long... at least the guessing is taken out of it... Only major observation is the 4-day consolidation SOX is displaying after gap up... this is exactly like 2001/02 when 4 days of gap up resulted in resolution on 5th day... so I expect a b/o or breakdown in following session... Indices are still at resistance except the dow pulling back from the 10600/650 area...On the daily a gap down would make an "island" which would be very bearish...



There was only 1 trade and it didn't reach its target... but the reversal entries all worked out very well for nice scalps.... notice the YM didn't have any entries at all.... so on chop days it's possible to have nice entries on reversal bars(??) something to watch in the future...