Thursday, August 19, 2010

Afternoon Update

This is the second well-formed divergence, the first was destroyed. If we get a breakout above the B.O. level, you can see the probable target, at least the pattern implied target, we could of course see the pendulum effect and have a move higher, or like the first divergence this one too can be consumed in bearishness.In any case, if it does breakout, it gives you a second chance to short or add if you feel you need to. Remember,you want to do that which does not come naturally, like shorting into strength. Your emotions are generally a reverse indicator.

3 comments:

JC said...

Looks like an attempt to run the market higher when the Prez was speaking, maybe thinking it was going to have a positive impact on the market.

Brandt said...

I missed his speech,but it looks pretty close to a breakout. We'll see,perhaps a run up in the afternoon to try to gap the market up tomorrow, this is how market makers and specialists make money.

Brandt said...

There's a decent profit in RINO, it is going up on declining volume and approaching a resistance zone near $17.25, it may continue to be an outstanding long,but the chances are good that this leg of the advance is close to a pullback.