Friday Wrap Up

Hell week ended in style – with one last whipsaw just to say goodbye in style:

Okay, before you complain about the short VTA – I told all subscribers today to stay the heck out and to forget about the Zero Grande (left side). The name of the game was to follow the Zero Lite since we expected a whipsaw day. I also told subscribers to not touch the tape unless we saw a strong signal, which we started to get around 1:30pm EDT, after the market had dropped for a while already.

I personally did not jump in at that point but when Zero Lite started to point up and form a divergence I shot out a message highlighting the fact that we might be forming a bottom. Based on the responses I received anyone left trading today headed for the exits, which was great because it turned out to be today’s bottom.

Watching the tape and the signal line afterward it was easy to believe that we might see a rally into the close. However, we suddenly ran out of steam and Zero Lite started to point downward, which surprised me. It quickly started to make sense however as we never really pushed away above the Zero line, which suggested that this was only a head fake. And sure enough – sellers closed the market today and we ended up pointing downward on both price and Zero signals.

If you observe the Zero Grande you’ll notice that it’s touching its zero line right now. I would however not put much stock into that as this was the last day of OPEX week and there was very little participation. Almost anyone worth their salt took today off – makes me wonder what I’m doing here typing this 🙂

Alright – I’m outta here – I’m in desperate need of some R & R. Again, in case you missed it: I will be checking in on Sunday but it’ll be a very short one as I promised my subscribers to polish up the damn Zero tutorial. They are sooo high maintenance, you have no idea!! (j/k)

Cheers!

Mole

P.S.: FINALLY I see some ThinkOrSwim ads over here. Glad to see an advertiser whose product I can full heartedly support 🙂 Hey, it took ’em long enough…