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Storm Chasers - Intraday Charts

When the sun shines brightly and the temperature turns up;  that is the time to start looking for storms that may be forming and may cause either a major pullback or a meltdown.

Dow Jones kept breaking whatever resistance I can find while SnP500 grudgingly follows hindered by the XLF but not necessarily shackled.  Compq is the laggard and more prone to start making a major pullback on the intraday charts:




All 3 indexes are able to generate new momentum highs on intraday charts that bodes well for further rallies.  Short sellers on the other side will be looking for divergence sell signals for possible high probability scalps to the downside since price tends to go into an initial vertical drop when it completes i-ii-iii-iv-v run ups on shorter timeframes.

But, watch out for this:


SOX is the potential Monkey Wrench for this attempted rally.

The Trend Trade is still this:


I prefer to go by with the longer-term charts such as the weekly and monthly for swing trades while monitoring the daily and/or intraday charts since the bigger ships are less likely to turn around until they reached their destination(s).

Hope for a happy trip but watch out for icebergs.

I bought back the 1/3 SSO holdings (sold on early morning rally in March 21) yesterday at average $50.08 when Compq made a touchdown to the 1st wave as a potential 4th wave during the run down to 2660.49 major support using the 30min chart (see compq 1-2-3 or A-B-C intraday wavecount last March 21 for 30min chart illustration).  I used the housing stats as a 'buy the panic selling' after the bad news came out.

Am using yesterday's SSO buys as my 'Hit and Run Trade' instead of YM.  Already sold 1/3 near $51 (during the afternoon rally when Indu tested it's 15min Double Top Resistance of 12,078) and sold another 1/3-rd at SSO's 15min 127.2% fibo extension resistance of $51.91 after breaking above the double top resistance of $51.49 today.  Will hold the last 1/3 as a 'free trade'. 

For Hit-n-Run trades, the 'Run' part is more important than the 'Hit' or 'Miss' parts.  Bag in some profits as soon as possible is the main objective.