Pay attention to this chart CAREFULLY

luckystar2006

Successful traders know that to trade well, they must have a sense of where market is heading to order to utilize their trading signals to trade along with market direction so they won't get stuck with their trades or accumulate their losses.

That said, I flipped through many charts in my chart book which all show some kind of bearish outlook for the next coming weeks.  You know? I hate to see any Hutong friends going to lose during coming weeks/months if market is indeed going to have a waterfall.  So, it takes me few days to figure out how to prepare below chart in a simple way that will show you what I see from all those charts in my chart book and from other trading systems.

One thing to be clear is that this chart is not intended as trading signals.  Its purpose is to show you a big picture of what market is up to.  There are 2 parts of this chart.  First part is the red squares which show relationship between moving averages that correlate among each other.  You can see that blue line already crossed below for the top indicator and vice versa for the 2nd top indicator.  That usually leads to blue line of SPY crossing below red line which means SPY will have to fall in order for this to happen.

The 2nd part of this chart is VIX chart.  Whenever blue BB is inside red BB, that means it will break out any time soon.  When it breaks on the upside, that means SPY will have to fall in order for this to happen.  Right now, it looks as if it wants to break out at any time.

Overall, this chart sums up everything about market direction and it clearly shows BIG risk to invest/trade on bull side right now.  Good luck to all and the only thing I hope for is that NOBODY is going to end up losing their hard-earned savings.

五谷

源济

谢谢分享！

cfayahoo

今天会最低收盘还是拉回，早上已经拉了一次了

wnd4

luckystar2006

This chart (courtesy of Stocktiming.com) with yesterday data shows the top indicator (i.e. Accelerator) already crossed below center line.  The 2nd top (i.e. MACD) seems to get ready to cross down as well.  Nobody knows if these indicators will work out this time to indicate a waterfall, but these indicators make us to aware of HIGH risk environment while we continue to carry out daily trading activities.

Rosie22

lite1067

thanks.

RedCedar

Thanks!

georgeyn

yitong

Thank you for sharing.  What is the setting for Blue and Red BB setting?  I tried for 1 and 2 std deviation setting, but it looked differently.

luckystar2006

yitong 发表于 2015-12-9 09:16 AM
Thank you for sharing.  What is the setting for Blue and Red BB setting?  I tried for 1 and 2 std de ...

I'm using the SAME moving averages for different market breadths.

yitong

Sorry, what SAME stands for?  I am using TOS.  Thank you

luckystar2006

It was a long day to take care of errands outside and I'm totally exhausted after 12-hrs of running around.  However, after sitting down for an hour to go through charts, I spent sometime made up this chart for Hutong with strong feeling that market will drop further over next few days.  I put simple explanation within the chart and you probably see the same thing as I see.  So, no need for me to elaborate further

Jeff

luckystar2006

Institutional selling chart (courtesy of StockTiming) is still in SELL mode

luckystar2006

MACD (courtesy of StockTiming) crossed below yesterday

luckystar2006

I hope NOBODY gets stuck with big pull-back today.  I don't think this pull-back is over yet and more to come soon before a bottom kicks in???  So far, I don't see any EARLY buy sign of signals yet.   It seems like another great Friday for me as I got out of my PUTs bought 2-day ago with 90% of gain.  I'm off for the rest of today to enjoy nice weather outside with my gf.  Good luck to all

cfayahoo

luckystar2006 发表于 2015-12-11 10:07 AM
I hope NOBODY gets stuck with big pull-back today.  I don't think this pull-back is over yet and mor ...

Congrats on the big gain again!! How low do you think this market will go? I am thinking market will go up after 12/16 until the end of yr, any thoughts? thanks

luckystar2006

cfayahoo 发表于 2015-12-11 10:18 AM
Congrats on the big gain again!! How low do you think this market will go? I am thinking market wi ...

So far, I see two EARLY buy signal kicking in today (not confirmed yet though because they might change by market close).  I personally NEVER long or buy calls here because I don't risk myself to catch a large and heavy knife.  Red vertical line back to August is an example which you will lose your shirt and pant with market dropping +100pt further.  I'll wait for those reliable short-term signals to scream for a buy before I go in.  Hopefully, this is going to be another BIG opportunity for me to make a six-figure income.