Tuesday, August 25, 2009

Technical Picture - Bearish Candlesticks

Markets notched new intraday highs on strong economic data, but failed to hold. After failing to retest the early highs, prices retraced back to session lows. This leaves the S&P with two consecutive shooting stars and possibly a tweezer top reversal pattern.

Keep an eye on economic data tomorrow - durables in pre-market, followed by new home sales at 10:00 EST and crude inventories at 10:30.

If you have POT on your focus list, we lucked out again today with a bearish h pattern. Quite similar to Jim's CME bearish flag yesterday, except the consolidation has more of a curve. Price penetrated support from 3 PDLs (red line segments) and tried to save itself through a lengthy period of price/volume contraction. But the bears were victorious on the expansion. Once support gives way, all the preset stops trigger resulting in a fast move to the next support level.


anarco said...

Could not trade today but I had a feeling that POT would do what it did after yesterday's action.
I am happy you caught it!

TJ said...

Thanks Anarco,

Congrats on your SHLD trade yesterday!

TraderO7 said...

Yes Jamie, POT was always on my WL. But then I traded ICE twice and got killed in the process and I lost my focus early. I just watch POT afterwards eating the dust.

TraderO7 said...

By the way Jamie, I thank you so much for letting/permitting me make comments right away. I can assure you that my comments will cover/based only about the subject you posted. It's a pleasure for letting me. I can tell, your blogs molded my learning curve and I have two folders of 3 inches thick full of prints all about your post that I always read to further my learning. I am so greatful about your blog. And one thing, it did not cost me any penny as compared with all the trading crap books I acquired, the prints that I collated from your blog equally vested all the amount I spent in buying books. Best regards Jamie.

TJ said...


Thanks for the kind words. ICE is not on my WL. I prefer CME.