All kidding aside…this is a CORRECTION, not a world ending meltdown. They let the bubble go on for WAY too long, made lending way to easy and cheap and now people are losing money and have become panic stricken again like back in Y2K. WTF, people like the bubble profits from 1995 forward but act like Chicken Little when the same ATR hits the downside? The BIG gains can come with equal or bigger losses…that’s how ATR works. LOL The market BADLY needs a real correction, otherwise the higher she goes the bigger and longer the bear cycle will be. We are in a bull cycle that has probably near run it’s course. Perhaps 1 more push but I really feel it’s nearing time for a full bear cycle.

I didn’t use log scale…this illustrates the wild ATR our market is saturated in.

Silver is near that 50ma and the top of structure resistance as shown on my chart prior. Silver has shown selling pressure on the prior push and now it’s lingering showing limited buying pressure. For a trader this is a low risk short with a clear and tight stop. As I’ve said before…no bias or silver hating here…just pointing out a obvious and sound trade setup.

Silver coming into daily resistance. This has been trending so clean I’d be shocked if this zone I drew out didn’t hold. Plus the MASSIVE volume on the paper markets seems to tell me there’s a good chance of a temporary bottom there. Clean resistance, with the trend….good place to try getting short. My strategy would be to enter half at the low resistance and then scale in the other bit if it penetrates into that resistance zone. From there you have a clear stop and a good cost basis.

Good luck

Remember this? I’ve been doing charts with this pocket of support for a looong time now. This is now where it get’s interesting, if the mean of the bellcurve doesn’t hold up it’s natural to have the market probe far in the other direction before coming back to re-test the mean. Do I think we break 10k? Well no, but if we do it’s gonna be a bear that will make history. We tested the top of this pocket on yesterdays tank with volume so I do expect lower personally.

How bout that oil breaking below 100 at the same time…odd stuff.

This is a great time to be learning the markets because it’s all falling apart. In a bull people mistake slow steady rising with skills. This is the market that tells you what bathroom you should be using. LOL

Well I think I see why they give the “NY minute” such a stigma. Just WOW!!!

Dow looks to be gapping down big on news that Lehman is filing chapter 11 and now the government is looking to print 70 billion more of their monopoly money. Should be interesting and creative in the ways that all these Failouts get dumped on the US taxpayers shoulders, I can hardly wait. In the mean time they continue the bickering over the Freddie Mac and Fannie Mae CEO’s alleged 24 million dollar combined severance package. Cause yeah…they deserve a reward for their HUGE role in collapse of their fcuking companies, US stock and financial markets, US property values and a large portion of Americans credit scores, driving the US into the ground. The only bone I think they should get is the affected peoples armbones up their asses! And on top of that they should pay the US 24 Million, or a $hitload more as restitution!

But WTF do I know

Here’s how the levels played out today. I gave added levels (red & green lines) in the chatbox as well. The levels given worked all day long, including pegging both the bottom and the big down move prior to the EOD explosion. Again the white dots were rock solid signals and the red dots worked depending on your trading plan. The red oval was a great level if you’re a pure scalper, you got to dip in over and over. As you can see these work in chop or trending days making them very noteworthy!

Levels for tomorrow coming later…

How did my levels do from last night?

The white dots are where the levels worked on the button. The 2 red dots are not on the dot but provided a divergence trade if that’s in your repertoire.

One could argue that the 5 minute cleans things up a bit and lets the candles form. Trade whatever timeframe fits your trading style but I would suggest marking these levels on your charts.

I’ve not cut these posts off from the general population yet but as soon as I’m healed enough to be consistent on posting I’ll shut this down except for those that are posting valuable content or that have paid the $5 monthly donation. These aren’t magic but they have proven themselves to me time and time again. If you have the right discipline and have created a setup off these levels you have plenty accuracy to be net profitable.

Daily Key Levels For Sept. 10th 2008
-YM-
High = 11,484
POC= 11,418
Low = 11,301
-ES-
High = 1258.25
POC = 1249.25
Low = 1230.00

The smart money knew the news already IMO…look at the hidden buying Thursday afternoon and again Friday. I’ll refer back to my UVOL/DVOL post…10:1 with flat price action (in relation to that ratio). And there was no other reason for that much volume in the middle of the daily charts range (especially Fridays action).

Think about the 10:1 ratio for a minute. For every 1 buy there was 10 sells? Why did the market not tank 1,000’s of points? This is divergence of massive proportions and why I posted that chart. If you see internals doing crazy things but the price action isn’t following there is something going on. ALWAYS be aware of your internals and surrounding market landscape! To track the animals that are “smart money” you have to look for their footprints in the sand.

http://tradersbase.com/mcs-musings/more-uvoldvol-at-work/index.html

Burn this chart in your mind…this is a flashing warning sign.

Good luck

http://biz.yahoo.com/ap/080907/mortgage_giants_crisis.html

WOW…landmark decision. My bias is bullish since in some eyes the crisis may be averted. You can’t overlook that this means BILLIONS being passed onto tax payers one way or another though.

While the paper markets are in breakdown mode…commod’s should bounce.
Silver looks prime for a bounce IMO. Tight stop and quite a bit of potential upside off this divergent test of the last lows, this is an excellent trade opportunity as I see it.

Remember you’re counter trend if you’re long, the 50ma has crossed below the 200ma already. Pay extra attention to the red dots as they are double backed resistance (by ma and structure). The best trades (with the trend) would be to look for rejection at those levels and get short. Those could also be used for long targets which is classic textbook support and resistance.

I LOVE this chart example for TA…it just is clean and clear. I see too many people out there trying so hard to make sense of a shitty chart when there are TONS of other plays. If the chart doesn’t hit you quickly don’t bother trying TA. If you cant see a clear line in the sand where bulls and bears will interact don’t play it cause it will be hard to gauge risk/reward ratios. Trending plays are MUCH easier to work TA with as the side winning is already evident and of high probability to continue. Choppy sideways action is often like betting on red at the roulette table IMO…unless you wait for the breakout that is. The consolidation plays do tend to be more violent and can provide quicker profit if you are patient and quick enough to enter on the break.

Good luck.