Thursday, October 14, 2010

Nice Melt Up

As any serious technician knows, when you have an intraday chart making a series of lower lows throughout the day, it is both sensible and predictable to expect a 180 degree turnaround in the closing hour and a melt up into the close.  Yep, right there in all the technical analysis books - just check appendix 82.1a.

[click to laugh and enlarge]

I was hoping to at least wait until tomorrow to kick the wall for selling my calls, but since the market is so 'efficient' it happened within 30 minutes.

Again, if your market experience consists of "3 hours", at this point you have as good of a chance as I do as nothing conforms to traditional logical outcomes.  Obviously a close below S&P 1170 would have been at least a minor chink in the armor, as the market would be below a breakout level.  Could not have that.  Urgent buyer time.

Long discovering new and innovative patterns


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