What is a Divergence?

A divergence in 3C is simply an indication of accumulation or distribution. We try to narrow it down using multiple timeframes, but ultimately we do not know how long smart money will be accumulating or distributing, still it gives us a much greater advantage then almost any other indicator I've seen.

Read Trade-Guild tonight. You will see that there are enough divergences to the upside in enough timeframes that we should see a bounce. The trades posted last night should work fine, or you can try out some ultra/3x long ETFs, but this is only a minor move, don't be fooled by it into thinking the market has become bullish.

I listed one new inverse (short) ETF tonight I saw on Telechart. the volume is low, but it is a textbook, picture perfect setup. While the market may bounce, it may fall and make for a good entry. Do not be surprised to see a move below the lower support line of the triangle as Wall Street shakes everything before they let it move. I'll keep an eye on it, you should too. Here's the chart-oh and UNG violated the stop by a penny, it's not a big deal in my book, but much more and I'll have to re-evaluate our position there.

Watch for a market bounce as early as tomorrow.