Pending breakout?

Here is the 30' SPY...

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Notice the trend lines, thats called a Symmetrical Triangle. We should break positive from here.
I'm really hoping the SPY can test 100 today. If it clears 100, we will be very bullish.

Here is the 60' SPY chart:



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Notice that the recent swing low was a bit lower than its predecessor. Then notice that the MACD made a higher low. That's called a divergence. Such conditions are a prerequisite for some buy signals; to some traders, it is a buy signal.

We'll see. I am holding several long positions, and no shorts... pretty durned trusting!

These days, a consolidation seems to serve as a pullback, therefore, we might be getting ready for another up leg.

We gotta pull back sometime... this many green candles is just ridiculous.

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freedomslighthouse.com

Situational awareness

Here is a 5 minute chart of today's EBAY Price action...



Here is a 10 minute chart of today's EBAY Price action...


The two images were captured at virtually the same time but tell very different stories.

This adds to the complexity of our work. One must be aware of all the timeframes, and what the broad market is doing, and what the sector is doing. All at the same time.

The only option is to trade on a daily chart and ignore the intra-day fluctuations.

The MA crossover trade.

OK... in the Free Trading Videos chat room today somebody reminded me of a stock purchase strategy... the Moving Average crossover. I was able to tease the Finviz stock screener to produce a fairly nice representation of stocks in this category with at least minimal fundamental qualifications.

Here is the link

The goal is to buy when the 20 ma surpasses the 50 ma. Obviously, other MA combinations are also interesting, however, this is the best I can do today.

Yah yah... when to sell? One obvious answer would be when they uncross.

Notes:
- This will obviously only work in a sustained bull market.
- Make sure the 50 ma is in an uptrend, or at least flat, when you buy.
- Make sure the SPY 50 ma is in an uptrend or at least flat when you buy, else, your poor trade won't have a chance... it will be counter the major trend.

Enjoy!

Update:

Extreme Price change can invalidate the signal:

Update on UGA, SLV, and UGA - Humiation

It's 12:40 rite now... I finished my lunch (noodles and a can of sardines) and pause to check up on a few of my favorites... what have they done today?

UGA is up 3.95%
Slv is up 1.26%
URE is up 8.75% today

I sold UGA at $31.31 it is currently trading at $32.58
I sold SLV at $13.22 it is currently trading at $13.63
I sold URE at $3.56 it is currently trading at $4.00

My advice to readers: do as I say, not as I do.

Sheesh.

I have managed to catch the ear of a Tao Master. I hope he can teach me to do better.

Oops

Sadly, I have stopped out of UGA, SLV and URE. I read this as a sign; the market seems to be changing. I'll be waiting a few days for either recovery or correction. After all, it has been a LOT of up days in a row. an unsustainable trend.

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