Tuesday 4 March 2014

Gaps filled and then some

9 comments :

  1. Bouraq, do you think EEM will catch up with the rest of the market?

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  2. Jeff, I turned bullish on EEM recently. I don't know what you mean by catch up with the rest but as long as it doesn't drop below the recent low, it's good.

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  3. Can you explain what limits the lifetime of the SPX blue channel? Thanks!

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  4. Answer: The hits on the lower band.
    If there was no Ukraine crisis over the weekend it wouldn't have broken down so quickly. It would have gone up to today's levels with 3 hits on the lower band and the 4th hit would be expected now. The order of events changed but the conclusion is the same. The blue channel will be broken this time when it hits the lower band again. This of course is all in my opinion.
    It sounds complicated maybe but it's not always like this. :)
    Lifetime of a channel for me diminishes at the 3rd hit on the lower band and 4th hit most of the time breaks it down.

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  5. Thanks. So the number of hits is the main determinant, not the presence of the higher time frame channel line (red) looming above. Is that correct?

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  6. BTW every time I see "Ze German index" I am ROFL!! I am German 8-)

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  7. It was refreshing to review your charts with comments today. I can see that you play close attention to your channels rather than being blindly bullish or bearish.

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  8. if you can take a look at erus or Russia in general sometime that would be great, thanks

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  9. My broker doesn't have the Russian index. They have Erus but a it is a limited chart only from 2011. I think 15.5 would be a good long entry if it falls to those levels.

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