A real hero for the bulls

HERO: the chart is so beautiful

Isn't it ?

the link to break out charts.
at 10/22/2009 04:27:00 PM

2 comments:

  1. AnonymousOctober 22, 2009 at 8:45 PM

    Tiger, here is your comments from yesterday, "Technically, not yet. It need the confirmation and follow through. But, the trend is pretty clear, it will break down soon."

    Why you think the trend is cclear to the downside? Based on ur theory, I think we r still well within the trap zone between 1080 and 1100, but today, mr. mrkt shows the intent to break above 1100. MSFT could be the catalyst to both sides.

    Look forward to hearing from the founder of the great zone theory. :)

    -bokchoy

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  2. TigerOctober 22, 2009 at 10:40 PM

    bokchoy,

    I think you grasped the theory very well now. I am very happy to know that.

    Yesterday, I answered your question "Do you consider this thing had fell out of the trap zone or still barely in it between 1080 and 1100?"

    My answer is that: technically, S&P has not fell out the trap zone because yesterday closed above 1080.

    It needs the follow through and confirmation. For example, if tomorrow or the coming Monday, S&P comes back to 1080 again and broken down, then it confirmed the trap-zone is broken down, and as a result, it will head to 1060 first.

    You are absolutely right. Based on the theory, S&P are still in the trap-zone. Yesterday, I say based on the clear trend, Market will enter the correction soon. Why the trend is clear to the downside ? Here was my thoughts:

    1. The drop was pretty sharp and strong, which is clearly showed in the chart. That means the selling pressure is high around 1100 level.

    2. Both 50MA and 250MA on the chart I provided yesterday are broken down all together. A strong warning sign.

    3. Doulbe top has formed in yesterday's 5 days chart. And lower lows are created.

    4. Today's reaction wave still below 1100. So, the coming reflective wave from around 1100 may re-test 1080 again. If so, I think it will break down 1080 for a while.

    Of course, we are still in BULL market, no danger at all from the daily chart. But I still think some corrections may be coming before we head to a new higher high than 1102.

    I would like to say around 1050 area is very expectable. I will use this correction to add some longs if it is possble.

    Thanks for considering my opinion. But, Mr. Market may not like my thinking.

    Tiger

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