Thursday, July 29, 2010

Update

As I warned, there was a good chance of the market rallying this a.m. as high as $112 before hitting a wall, it didn't quite hit $112, but it did hit a wall.

Yellow=positive divergence red= negative divergence. As you can see, the divergence was fairly large so yesterday's price climb didn't do it for me. If you see where they started accumulating, it was higher then price reached yesterday. Yes they accumulate on the way down and therefore have an average cost that is lower, but I assume that price will usually go higher then the first prices they paid. You can also see the brick wall. Right now 3C is going through it's typical ups and downs, but it's at a juncture like this that 3C makes positive divergences or just heads lower to confirm price action-we'll see and I'll let you know ASAP. I just wanted you to see what I saw at 4 a.m. this morning.

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