Friday, October 17, 2008


We are consolidating in a symmetrical triangle, meaning, we aren't going anywhere for a a few days. This pattern has a 50/50 chance of both breakout of breakdown which is the reason why I'm staying in cash at least for now. Today was interesting however. The materials/industrials sectors displayed strength and formed double bottoms, but hit major resistance at their prior short-term highs. It was a good day to be long and short and another reason why you must either sit in front of the computer all day or place stops.

DJIA (INDU) - 1-Day Chart

Here's a close-up (10-day Chart):

Don't forget to try out the Free Trend Analysis. It's FREE, so give it a shot!


Stewie said...

love those charts. that's exactly what i am seeing out there. lots and i mean LOTS of folks gonna get caught off guard on this one. nice chart work.

John C. Lee said...


You are right. Only the informed will be safe and perhaps make a killing next week.