May 3, 2006: Cnsld

This is the second time I do this entry, first one got deleted by mistake urrghhh... Ok, the market didn't do much today except just chopping around... as mentioned in last blog entry, the Dow followed the 3-humps pattern and closed just on the trendline... Also, semis followed the W pattern...

For tomorrow, the market seems to be setting up for a nice move.. The patterns to watch are the Dow, Semis and AB30min (tri b/o). What I'd like to see for the long side: BKX above ma, NQ TD confirming bucket pattern, SOX continuing W pattern, and 3-humps on Dow failing with an upside break. If the 4 scenarios don't take place, then I'd favor the short side.

Trading commodities is where I spent my day... Had excellent trades on Gold, Silver, and notes... Swiss Franc trade bombed and barely got out with few bucks to feed the cat... Look at the "icicle" pattern which is a pointy tip confirmed by larger patterns such as arching HS or plain HS... They're similar to the ones that took place 2 weeks in the metals meltdown... (Trades and setups marked in Red arrows on the charts).

Still need to figure out the currencies, till then I'll just be ultra-conservative with the setups till I do further analysis.