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Monday, October 13, 2008

The Dow over the past 20 days

Below is a chart of the DJIA dating back to mid-September. The three white lines represent 10,000, 9,000, and 8,000. The Fibonacci lines are plotted over the high to low for that same time period.

I don't pay much attention to the bigger picture, and I don't try to predict market direction. It doesn't really matter to me as I trade what the market gives me every day and close out my positions by the end of the session. It is worth noting, however, that we are approaching what I call the "Retracement Zone", and this area is likely to provide solid resistance. Unless we gap over it, in which case watch out 10,000.

Either scenario is likely given the crazy volatility.

This has been a Trader-X Public Service Announcement.

PS - Is anyone going to watch that new Christian Slater show tonight? I am intrigued.



LK said...

You're absolutely right X. You can see how it hesitated right around 9000. Hopefully it will gap and continue on it's way... and we'll emerge from this cow patty we call a market!

David R. said...

The volatility is amazing. My money is on a stall out just a little higher, and a reversal to head back down.

My Own Worst Enemy looks good. Thanks for the head's up!

reno said...

I just finished watching the show and then came across your post while reading through feeds. Definitely something I'd watch a few more episodes to learn more.

Terry said...

Nice trade. I thought that show was good last night. What about u X?

Trader-X said...

I liked it. I will check it out for a few more weeks and see how it progresses.

Anonymous said...

I noticed we got the reversal. Good call.