Wednesday, April 09, 2008

Wednesday pivot high

Qs volume picked up a little today in the midst of a day long slide. The 10/20 MA cross gave us a great entry and exit today, although the parabolics actually generated the better signal.
The NYAD showed a complete lack of upward momentum and although the TICK looked modestly bullish after 12:00, it proved to be poor indicator of the afternoon session.
On daily charts (not shown) The Qs, DIA, SPY and IWM are all coming off pivot highs. . thereby suggesting more downside in the short term.
I've included the 5 minute IWM chart below just to demonstrate the rather amazing correlation between the daily dynamics reflected in the pivots, parabolics and 10/20MA turn signals. I watch the IWN in tandem with the Qs as a confirmation of my short term trades. Doing so often keeps me from being sucked in to false breakouts. . .a favorite market maker head fake technique designed to get you to buy just before they sell.

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