May 11, 2006: TD

Boy, did I miss out on a great day to trade indices? TDs are my bread and butter cuz there's only 1 direction to trade the market and look at the range WOW! With how I've been going this week I better get some rest otherwise.......

As mentioned in yesterday's entry I expected a TD within 1-2 days post FOMC and that's exactly what happened. Also from previous analysis having NQ & Semis lagging the market badly for the last few weeks didn't bode well for the market and that action was bound to take place.

Moving forward the indices should have a technical bounce on Friday and I'm taking off for few days.


Gold gold gold..silver silver silver..my my oh my, what can I say? The 1 setup speaks for itself as marked on the charts... H&S pattern confirming daily b/o on silver... same pattern for gold with continuation on daily... The currencies supported that b/o and only thing I wasn't happy with is my early exit...was it really early?hmm.

The red arrow on gold marks an entry I like to take when it presents itself which is shorting V. It could've worked today and positioned one to play this for few days as it's close to a top.

Looking at the Gold intraday b/o it is akin to the one on NQ daily that happened few weeks back. These are usually blowoff moves that preceed prolonged cnsld periods. So I'm looking at today as a key day on Gold that might signal a pullback. In case today's high is taken out then the target I got is 740 area which isn't too far from here then the market should stall and reverse. Should note there's a pullback on Gold worth at least $2k per contract. The rules are simple: No tops picking! The tops reveal themselves within larger patterns. E.g. if the top is a H (head) then the RH(right shoulder) is the entry...as simple as that.



I see the NKD and the patterns look clean so might take a closer look at it.