Looks Like an Intraday Double Top

I think we may have seen a double top on the day against large resistive volume spikes on each effort to break SPY $93.30.

I am also noting that the energy complex is largely floating this boat (XLE +2.59%)... Countering this technical note, cumulative tick and advance decline lines have been consistently positive sloping, albeit mildly so, and the daily pivot proved strong support at $92.00. I will look to close my profitable TBT trade on any turn in fortune. My tax cuts, hmmm...

Comments

[William Arm...:]

I have finally had enough of this voodoo finance.

Intra-day double top? -- give me a break. Cumulative tick and advance?! My grandmother had that, but she lived a long life, because she didn't trade on the signals her disease was so personally sending her. Next you will be seeing the image of Fatima in your charts.

There is NO, repeat after me, NO evidence that reading entrails reveals patterns that have a predictive quality. Thousands of Phd students have proved this and it is written up for all to see in their theses and journal articles.

This kind of technical analysis is the alchemy of investors and bloggers who could not get in to a good B-school or get through the Graham, Dodd and Cottle Securities Analysis text without getting lost. Please spare us -- some of us are serious investors spending precious time looking for new information.

Jan 05 07:32 PM

[China Expert:]

I could not agree with you more. So many investors would not know the difference between a balance sheet or income statement if it bit them in the nose.

Those who believe the "angle of the dangle" can create realistic profits, play for pennies, loose quarters and miss opportunities measured in dollars.

It's funny how often "trades" soon become "investments" and then traders have no idea what they own nor why they own it.

Jan 05 08:22 PM

[ashadu:]

If you think Graham and Dodd are running this circus you must have plenty of time ,money, and patience left. best of luck.

Jan 05 09:50 PM

[Urbane Gori...:]

Agree with ashadu... When I finally realized that relying on fundamentals was resulting in a smaller and smaller portfolio, I finally read up on technicals.... Look! See me smile! People that knock fundamentals apparently are lacking in spacial coordination and pattern matching abilities.

jegan ;-)

Jan 06 06:30 PM

[sr9web:]

To the author:

Why don;t you techinical egghead ever EXPLAIN the significance of your observations!!?

"Uh Tangnet X has overlapped Delta Z..."

Great!

Please tell us WHY that is siginificant!

Jan 06 10:57 PM

[William Arm...:]

Dear Ashadu, Jegan;

I've never before got into these comment skirmishes but this is too fun to pass up. Do you guys think that Warren Buffet, Peter Lynch, Jim Rogers, Oscar Schaefer, et al spend their time looking at the same squiggles that you do? Or, (how's this for radical) do you think that they might be reading the companies' financial statements, getting into the notes, consulting the companies' web pages, especially the investor relations part, looking at SEC filings, etc. Me, I don't know, but it makes me wonder.

And Jegan, before lathering yourself up in a tither about pattern recognition, you might want to reread that sentence you wrote. It appears you lost the pattern of the argument.

Jan 07 04:18 PM