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Channel Guide

Channel Guide

by The MoleNovember 2, 2009

We could be anywhere at this point – but the chances for this being Minuette (ii) were drastically reduced when we made new lows at about 12:30pm EDT. So until this tape drops a bit more let’s look at a simple channel chart for short term break out/down potentials:

Seems like we’re taking a turn for the steeper – which supporting the current downtrend scenario. Actually I would have liked to see a little more of a pop but am not complaining if this still is a third wave which decided to continue lower.

3:19pm EDT: Just a thought on the Dollar:

We would need another drop here and then a bust higher. It’s a possibility as triangles often occur as fourth waves. The only difference is that futures and currencies like to extend their 5th waves, so what follows could be a long push higher.

Hey, of course I might be completely off the mark on this one – thoughts appreciated.

3:26pm EDT: They are heee-eeeeree…!!

The signs for a looming reversal that is. Add to that some developing divergence in the Zero Lite, which I will show you rats later.

3:43pm EDT: We are at VWAP on ES (1038.25) and NQ (1668.5) now – if you seek to hedge today then these is your uncle point. NYSE A/D around 0.97 right now.

About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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