Wednesday, September 28, 2011

Highest Probability Entries

The highest probability entry is on the completion of a head fake and when the traders who jumped in on the trade (shorts here) start to feel the pain.

 DIA first in to the descending triangle and then above it, around $112.

 IWM is just about in the triangle now, so above it around $67

 SPY around $117.50

As you can see, the correlations are off again today. A move in the VXX below $47.50 would be strong for the market.

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