ES 12-23-09

Well gang ,its been quite a year! Now here we are at new highs , just as i promised last week! though i think higher (1133 or even 1170) may be in the cards early next year, i think now is actually a time to be very cautious. Just simple tech. analysis (and 20 yrs of experience!) but i still worry about a break to new highs which we are getting , and then a real decline! (a whole lot more than 10 or 20 handles!) . Its just that we had such massive neg divergencies on daily and weekly charts! I know they can last quite a while , but most of them have already! To show by example how nervous i am, i just went to 50% cash in my i.r.a... still holding calls (Jan 112's on the spy) from near that last good low at 1088.50. for today which i thought might be down (still might) i wonder if we go to that 1123.25-1123.75 area? .. Any way , also wanted to wish everyone and their families a happy holiday!

DING DING DING
Kool thats your alarm clock.

got my beauty rest, and here i am!...Have to leave in one hour, but i'll be here till then.

Kool I want to wish to you and all your merry band a very happy holiday

thank you sir!... have to work tonite but only 4 hours...selling 1116.00

..

See the above chart? Way on the left hand side ,you can see i re-drew the projection from the 1020.00 top to the entire initial move ,not just the initial move. Thats why its showing 1112.25, not 1112.75. What i think is noteworthy is the price still overshot 4 ticks down to 1111.25. I believe that kind of behavior denotes lower prices to come... but time will tell!...oh yeah, short from 1116.00.

Note also the 'big boyz' (red indicator) are more than happy to acccept all the buying from the blue, retail crowd! lol We have been seeing that more and more lately!

Originally posted by koolblue

Click image for original size

1112.25 was on the money, too bad i didn't take the trade.
Will follow more closely for next week, thanks blue !