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Bearmomentumdivergence

SPY Complex Correction In ProgressWe thought the downdraft in October marked "ABC" on chart was the correction. But... We got another pivot at the .62 Fibo, where B turned, now X turned again. Looks like we got a larger WXY wave. ABC was the W that formed first bottom. If this pattern completes, expect -33 on the ABC leg to approximate the X-Y leg. This would put Sand P down around 252. For starters. Let's see how it plays. In my humble opine, we are entering bear market, started 4 October. Sorry! This isn't advice, it's a half-baked idea, trade at your own risk and good luck!
AMEX:SPYShort
by DaddySawbucks
4
1hr BTC (Finex) The dead cat bounced, now what??Hello all, Since Google hangouts is still down for me (super big ugh) I am posting this 1hr chart as an update for my followers. I am not in a trade at the moment and have little interest in taking a new position based on current trade location and size of my account. Having said that, there are those out there that do want/need to trade and so with that in mind, here are my thoughts. As was previously mentioned, BTC has regained some of its volatility of late and price swings of greater than 10% in either direction shouldn't be unexpected. We did indeed bottom off the OTE long sweet spot tag mentioned in yesterday's post and that rally was substantial. So much so, that it broke the existing bearish ab=cd price pattern and has put the bear back into his box for the time being. However that rally also built in some bearish divergences that need to be cleaned up before any new rally highs can be seen. Indeed, Willy got a little 'stupid' and the buying volume registered a divergence too. Interestingly, we do have the big FBI auction coming up shortly and I see that as we head into that event many of the higher time frame over-bought /oversold conditions have been resolved....maybe a little consolidation is needed before we get our next move in earnest. So at the moment, consolidation targets '1st stop' (38.2) and OTE (long) zones ought to represent reloading zones should the bull want to press forward. Once into the OTE (short) zone I would be rather cautious as to further upside objectives. Cheers all and hope it helps If my charts help you, or you use my indicators... please consider a BTC donation to allow me to continue my work : 1EBttA56cWsgtsZn83VGiNT8si7inZV5Z5 & follow me on Twitter @CRInvestor
BITFINEX:BTCUSD
by CRInvestor
Bitcoin (Finex) review - Daily perspectiveHello all, With a little spare time on my hands today (Google having issues today...ugh), I thought I would take the opportunity to review/comment on Bitcoin's price performance from a higher time frame perspective. Here then is Bitcoin's Daily price chart (Finex) over the past four months with notes and levels. Looking backwards: As has been frequently commented on, Bitcoin experienced a rather well defined rally through the spring of 2014 as price broke out of a narrow sideways channel near $460 (May 20th) and didn't stop its upward surge until both its bullish ab=cd harmonic price pattern objective and the 200 SMA were comfortably tagged (and even briefly surpassed). This gift of a trade netted +40% returns for even slow traders like myself and I hope those reading these posts made some nice capital gains on the event. There were a few very clear signals that the market was getting over extended (Willy very 'stupid', bear momentum divergence) so expecting further upside appreciation may not have been realistic. Indeed, with the recent break of the important short term lows at $620 (confirmation of a daily double top) I feel that trade is now over and we must now start to look forward and anticipate where we may be headed next. Looking forward: Considering momentum's very bearish reading at the moment, new purchases are on hold for the time being. I have been making the case that I will only buy more if/when momentum and volume bottom at either the 38.2 or OTE long zones and I am personally sticking to that strategy. We still are not at those levels and momentum and volume are no where near bottoms so its a big hurry up and do nothing for me at the moment.. Indeed, one could very realistically be short from the $620 fail (with stops at new highs - $685.01) looking for both a '1st stop' target tag (38.2 Fib cur $553.21) and ultimately a test of the Optimal Trade Entry (long) zone (61.8 to 78.6 Fibs or $471.79 to $413.83) before this correction is finished. Since we really only want to take trades that have at least $2 of reward for every $1 of risk taken, I feel the trade could only be justified if one were to use the OTE long zone as your target. Specifically, a 61.8 fib target $471.79 would imply a little more than 2:1 reward/risk setup. The trade itself is going to take patients & discipline in waiting for those levels to be hit. Indeed, at present price is contained within a moving average 'sandwich' (13ema/30sma) and it may take some time to break out of this pattern itself. Having said that, if one has the patients and the setup is in your trading plan, imho it isn't a bad idea at all... Cheers all and hope it helps If my charts help you, or you use my indicators... please consider a BTC donation to allow me to continue my work : 1EBttA56cWsgtsZn83VGiNT8si7inZV5Z5 & follow me on Twitter @CRInvestor
BITFINEX:BTCUSD
by CRInvestor
6