Cross Currents

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Good trading all.

Steve Chapman, TRI


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5 comments on Cross Currents

  1. Randall
    March 23, 2014 at 9:30 AM (4 months ago)

    Wouldnt. Slightly higher high be more effective to trap the longs.. Day a quick shot thru 1400 that than gets reversed same day? This is the scenario i see playing out and 1400 is the level i would like to scale shorts

    • Steve Chapman
      March 23, 2014 at 10:06 AM (4 months ago)

      I agree, just that we have already hit the MA Envelopes, we got a 5th wave divergence, and the thrust down happened. Those are signs usually found at the top, not preceding a top with another high still to come. It’s still up in the air.

  2. Randall
    March 23, 2014 at 10:34 AM (4 months ago)

    Yep agreed but w metals funky stuff happens to confuse the maximum amount of people like the day 1 top in september. A 2 week rally into nfp with stocks weak would be the perfect trap and wud flush sentiment for sure. We shall see.

  3. apple
    March 24, 2014 at 6:13 AM (4 months ago)

    Steve,

    Based on your COT analysis, do you believe another smack down is in the cards or will this be a big down day sandwiched around some small pops and mostly sideways moves. Thanks.

    • Steve Chapman
      March 24, 2014 at 6:18 AM (4 months ago)

      I think the odds are very high that the intermediate cycle has topped and that Wave 5 down of this bear market is now underway into 2015/2016. I would not try to play the long side anymore and would instead look to join the other team on short squeezes.