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Another day, another successful little scalp for Zoidberg. As I intimated the other day, there hasn't been a dud since November 21st, and I am highly averse to tempting Fate - but the market had shown several signs that pointed up' so "Up' as the call. Here's the e-mail (which was a tad late - it got to Inboxes at 1:03 p.m. with the SPI actually below 4563)
Guten Abend.
Today's trade is a relatively high-risk job; there have been three tests of 4550 today, and two of them failed, but both 'failures' were small enough to basically be people hoping for a breakout below 4550. In other words, nuffnuffs.
Furthermore, each break has coincided with a higher level on the 15-minute CCI - a classic divergence. Each bounce has been eminently tradable (I've been too busy to respond to the buzzer though).
After 1 p.m. (i.e., NOW), the market should have a long-side bias; it's currently at 4563 (a 17-point bounce off the low), and the next primary intraday leg ought to be UP.
I said the other day that we were due for a loss, but given that the SPI has fallen 100 points from in 3 sessions, I don't think this one will be that loss.
Targets (5,9,open).
Regards,
SPISpy
the Chart below shows the entry and exits - I was too busy with other things to prepare the e-mail that ought to have been sent on the divergence-generating second test of 4550 (an obvious level if ever there was one), so I had to wait for a secondary 'thrust' signal, which didn't happen until just before 1 p.m. Sydney time.
Anyhow - it worked (yet again). the blue bubble is the entry. note the divergences (the small-case 'd' indicates a 'microdivergence' which doesn't satisfy all of my rules, but the upper case 'D' is picture perfect).
After what looked like a failed test of 4580 at 3 p.m., and with the market reasonably overbought based on %RI declared Victory for 3-and-up traders (shown by the arrow marked 'X'), which was a bit of a bummer since it ran all the way top 4588 therafter.
When I wrote the last sentence of the "exit-all" e-mail, the SPI was at 4577 (which is the number that is going in the RantRecord), but by the time I hit 'Send' the thing was back above 4580. I did send out a subsequent mail that declared that I would use 4580 as the RantRecord exit, but I have decided that the Record doesn't have of split hairs over a couple of points.
