Erie's journal

[erierambler]

we hit potential "r'

Today we hit potential "r". Sell off came down to previous day's close. Make note. For Monday will look to go long , since we are in uptrend. So would look for price to test today's low with possible penetration to potential "s". See attached charts. Should price test the high first will just wait and see what happens with price.
erie

 

[erierambler]

looking for potential support again

We could go all the way down and test the lows, but first looking how price reacts here on the charts . Now we have a retracement.
erie

 

[erierambler]

we are now at potential "s"

let's see how price reacts here.....
erie

 

[erierambler]

interesting

The Dow was strong today and the Transports were weak. There was diminishing lows on the Trans today, take note. Not much follow-through from yesterday, maybe tommorrow.
erie

 

[erierambler]

some buying pressure

There seems to be some buying pressure here, so we shall see what is in store.
erie

 

[erierambler]

stepping back to the forest

looking at monthly and weekly charts of the transports and industrials....
erie

 

[erierambler]

snapshot for now

Here is the daily and the weekly...
erie

 

[erierambler]

Fed Announcement

Fed made .50 cut today. Making note on XLF, volume noticeable today. Particularly SPY, GS, LEH,WM,MET,AFL, ALL,and MMC.
erie

 

[dbphoenix]

Given whre price wound up in most of these, do we detect a faint aroma of distribution?

 

[erierambler]

Given where price wound up in most of these, do we detect a faint aroma of distribution?

Yes , especially if we break the lows of the 28th on SPY or even on the indicies. Will see how far followthru will go......
erie

 

[erierambler]

Volume

Noting volume on chart for sectors lately....
erie

 

[erierambler]

today's notes

Action for today annotated on attached chart. Dow- diverging highs, increasing new lows. Transports- no new highs, increasing new lows. IYY- diverging highs, big increase in new lows. Small caps(S&P600),diverging highs, big increase in new lows.
erie

 

[erierambler]

at resistance

Obviously demand overcame supply, new lows previously were absorbed.... here we are at resistance. Noting reaction above here........ New highs confirm highs in price but seems to be at a plateau . note seems
erie

 

[erierambler]

today

pre session price is higher than close,for now, new lows had increased yesterday. Resolve springboard?
erie

 

[erierambler]

Monday's a holiday for some

and here we are at support. Price still hasn't resolved itself yet. What i'm looking at for the next session............ new lows have increased to the level of Feb 5th and price is at the same level ...hmmmmm
erie

 

[dbphoenix]

Justin Mamis of The Mamis Letter recently noted that bear markets typically involve three legs: denial, realization and give-up. It's his view that we may have experienced the first leg but that the second one is yet to come. This realization leg occurs when people comprehend why the market is going down and sell stocks in response. As he points out: "A bear market can't end -- never has -- until denial turns into realization. . . . This is a long process, because the light bulb doesn't come on collectively but gradually. Some are quicker to catch on, or less dumb, than others."

As to the give-up leg, Mamis characterizes it as the culminating phase. So, given that we may have seen only the first leg, his eyes and his words are telling him that the process has a long way to go and stocks have a long way to fall.

 

[erierambler]

today

the Futures ended up close to support, but the underlying, big cap Sectors ended up close to resistance......underlying may be stronger .......charts attached. Paying attention to the divergence.
erie

 

[erierambler]

observations this weekend

Looking for clues and areas to watch in a few instruments......
erie

 

[erierambler]

potential resistance is here

No chart attached.........