Wednesday, October 15, 2008

TODAY'S BREAKOUTS & BREAKDOWNS

No breakouts today, which happened to be the 2nd worst drop for the Dow in points (733!). In fact, the markets have been so erratic, I haven’t found clean breakouts for the past 2 days and just a few breakdowns, so I didn’t bother to post on them. However, early this morning at 12:03AM, I did write an article on high-reliability reversal signals because I found hundreds of them while I was going through my charts at night. This prompted me to put out a clear and immediate warning, and it was my signal to go 100% short…again.

Fundamentals don’t really matter in this market at this stage, but technicals do. Fundamentals are oblivious to fear and panic and are useless, but technicals paint a clear picture of that fear in action and therefore allows you to take your own action in response. Traders must recognize these reversal patterns, because it doesn’t matter if the market jumped 11% on Monday. Longs who haven’t sold already will lose all of those gains tomorrow! These signals are not “just stupid pictures on a chart”. I’m up over 51% for the month of October, personally, and have relied on the very same signals to lead me to make the correct trades both long and short. In fact, today was one of my best days this year. These signals are not to be ignored and I’m demonstrating how important they are right now. I hope each trader here will seriously study these patterns and be able to identify them. If you need explanations, just ask, and I’ll be more than happy to make sure you understand.

We had several breakdowns today, and I’ve been identifying critical areas on the charts in my previous articles but I feel that, by now, you should already know how to identify all of that yourselves. I am only identifying reversal signals so that traders who are unaware of what happened today can be prepared in the future to avoid getting killed on days like today. Remember, these signals serve two purposes: 1) loss prevention for longs, and 2) profits for shorts.


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

No comments: