Session Start: Wed Oct 22 09:22:54 2008
Session Ident: #pitstock

[09:23] good morning
[09:25] USD /dollar .. a bit upside gap up .. http://chart.nu/chart?filter=21&ticker=DXZ8
[09:27] ES .. symmetrical triangle breakdown .. http://charts.dacharts.com/2008-10-22/rayban81.png

[09:56] ES .. channel .. http://chart.nu/ES_intraday_200081022_am.gif

[10:06] GC /gold .. needs to get to lower bounds of channel around $700 .. http://chart.nu/chart?w&ticker=GCZ8
[10:07] the last 4 day s have been very choppy action into lift = corrective action .. now clearly in an -Impulse- down
[10:09] keep close eye on lower bounds of symmetrical triangle off 10/10 spike lows
[10:20] 10:15 .. turn & burn?
[10:22] for gold bugs .. would rather pick up XAU options on the turn (vs. GC futures) when gold tags 650-680 mark .. miners are being shafted hard
[10:24] using the USD /dollar as the key signal for next turn .. when repatriation flows stem

[10:26] ES .. no clear overlapping structure (yet) .. ES 922.5 key overhead .. http://chart.nu/ES_intraday_20081021_ch.gif
[10:35] ES .. first set of overlapping waves on 5min
[10:37] ES 922.. key test here of previous spike low / bounce hi
[10:45] ES .. 3rd push higher in the works? .. choppy action into bounce
[10:47] heard an interesting point from an economics professor that worked under Bernacke .. said that the US is indeed printing dollars (fiat currency) backed by nothing .. other than the fact we have largest CONSUMER base as ‘collateral’

[10:49] ES .. small measured move target at 927
[10:51] ES .. 60min .. larger perspective .. http://chart.nu/ES_intraday_20081021_tgt.gif
[10:53] BZ = “Brach Zone” .. represents the area between 62%-78% retracement .. signal from a very saavy fib trader

[10:58] ES .. small bear wolfewave on 5min .. not really scalpable at these levels
[11:06] does ES 922 establish as support on pullback?
[11:09] ES .. small ww setup .. http://chart.nu/ES_intraday_20081022_ww.gif
[11:10] kinda expecting another higher-low on pullback.. to form larger pattern build into 3*push sequence higher with overlap
[11:13] would much more prefer to short ES into lift to upper channel bounds around 934-935
[11:15] ES .. update with ‘preferred’ ww setup / count .. http://chart.nu/ES_intraday_20081022_ww2.gif

[11:36] HG /copper .. confirming 2x top breakdown below 238 trigger .. “copper roof over every bull market” .. http://chart.nu/chart?m&filter=5&ticker=HGZ8
[11:46] ES .. 2nd higher-low in place on 5min chart .. dang that took forever
[11:47] market oscillating in 10-handle movements
[11:51] looking for edge into lift to ES 932-935 .. ‘measured move’ target
[11:57] sticks – just looking for a rest of gap down open .. this is the setup / scenario .. http://charts.dacharts.com/2008-10-22/Buff_54.png
[11:59] can only assume that those levels would be visited as part of noon swoon low-volume action .. more of a PM trade play for close

[12:33] still looking for ES 932-935 trigger
[13:05] ES .. small head’s up on break of lower trendline bounds off spike lows.. http://charts.dacharts.com/2008-10-22/Tipper16.png
[13:05] pattern setup suggests bear flag on 60min
[13:06] -if- another higher-low is tagged.. watch for 3rd push higher to get into ww pattern
[13:07] choppy action into lift suggests this is only a corrective wave, not impulsive
[13:13] we are still in middle of daily / weekly wave 4 – SHARP .. = extreme volatility .. a place to trade bull / bear flags .. a-b-c corrections are the ‘norm’
[13:13] target = measured move on any intraday scalps
[13:15] “seen it once” = wave A .. ‘expect it twice’ = wave C

[13:27] ES .. bear flag confirming .. http://chart.nu/ES_intraday_20081022_flag.gif
[13:30] bounce sequence signal .. scalpers beware
[13:34] gonna slide hard into home base .. impulsive action here pointing directional bias for close
[13:51] ES .. intraday downside measure met
[13:53] impulse down.. another bear flag setup into a-b-c bounce?
[13:54] ES .. pm update .. http://chart.nu/ES_intraday_20081022_tgt.gif
[14:00] ES .. small a-b-c visible on 5min chart
[14:01] bounce to test 5min/20ema
[14:03] SPX /sp500 cash .. triangle tightens .. http://chart.nu/SPX_daily_20081022.gif
[14:03] in general .. rule of thumb to follow on triangles ..
[14:03] the breakout / breakdown -ideally- comes right at about 2/3 distance from start to apex
[14:04] if this consolidation runs to apex .. all best off on pattern setup
[14:04] should be very close to tipping its head on resolution of this consolidation sequence
[14:05] ES .. yet another a-b-c .. as part of larger beaf flag sequence .. keep lower bounds of rising channel on radar .. http://charts.dacharts.com/2008-10-22/rayban93.png

[14:06] choppy / overlapping wave structure into the lift .. 4x knock on lower trendline
[14:09] looking for higher-low to show on 5min chart .. ‘B’ wave low
[14:11] ES .. 4x knock resolution .. http://charts.dacharts.com/2008-10-22/rayban95.png

[14:12] ‘b’ wave low?? @ ES 908 levels
[14:15] ES update .. http://chart.nu/ES_intraday_20081022_f2.gif

[14:17] bounce will be meager .. am not expecting full measurement to ‘c’
[14:20] ES .. keep upper bounds of triangle on radar .. http://charts.dacharts.com/2008-10-22/rayban98.png

[14:23] wave ‘B” .. “BZ – Brach Zone” .. right @ 78% retrace of 1st bounce
[14:24] ES 915 .. ‘c’ here
[14:24] measures to 916-917 levels
[14:25] “C” measure met ..http://charts.dacharts.com/2008-10-22/rayban01.png

[14:26] aother clean a-b-c retrace on 5min
[14:30] ES .. update .. http://chart.nu/ES_intraday_20081022_abc.gif

[14:43] ES 905 .. retest of lows .. scalp out
[14:46] ES .. starting to show some overlap into downdraught .. dangerous “V” spike levels, now
[14:47] downside momo suggesting a pause in impulse action
[14:52] ES .. target here
[15:02] bounce only confirmed spike low resist
[15:03] no / little overlap now to suggest impulse action abating
[15:04] just seems like there should be some “V” action here
[15:04] dunno why ppt not getting their sh&t together

[15:19] testing lower bounds of symmetrical triangle on all indicies
[15:23] rare ‘butterfly’ on ES 5min chart .. just seems we are touching a root canal level here
[15:24] ES .. butterfly pattern visible here .. am not familiar with trading this pattern much, but visible .. http://charts.dacharts.com/2008-10-22/rayban09.png
[15:27] just seems like bulls would make a major stand @ SPX / ES 900
[15:31] bears of course want close below triangle bounds to show that pattern is tipping its hat
[15:35] -8.2% close?
[15:36] due to overweighting in banks and oil .. contibuting to ES slam
[15:38] http://charts.dacharts.com/2008-10-22/Huddy65.png

[15:41] s&p .. -8.2%
[15:42] am action .. accounted for -4.1% swing lower
[15:43] dayshorts will cover in last 15mins
[15:48] ES .. small a-b-c retrace
[15:49] is this the bounce to retest lower bounds of daily triangle as resistance overhead?
[15:51] ppt @ bat
[15:52] ES .. update @ trendline test .. http://chart.nu/ES_intraday_20081022_3x.gif

[13:00] <voodoo> “V” – spike, baby