Thread: alevin's account talk

I'm curious to see which way the week goes. One guy I watch is tracking 3 Peaks Domed house-with top of dome projected this week. Another guy I watch says we hit price exhaustion tomorrow on DeMark trend count. Another guy I track says if you like playing in the middle of rushhour traffic, be his guest, just know the probability of ending up in the hospital and have some good insurance ready.

One of my outside stocks, small oil in excellent location, did massive profit taking move today. No news to otherwise explain the big drop, but an insider sold a lot of shares last Friday. I may decide to downsize my holding, another company working the same formation is currently being promoted as better longterm buy based on financial (debt) condition-but I'll have to wait a little bit, that whole sell-replace in kind rules thing.

still playing safe (too safe it would seem) in tsp. One of these days....broken clock and all that.

Well, I miss out more often than not, but glad I missed today. Here's what I'm seeing in the weekly chart. Notice how many weeks we've been up against 1st resistance level on weekly chart. Hmmm.

spx weekly pivot and resistance 7-31-14.png

does that chart mean it is supposed to keep going up after a little stutter step here?

i was thinking i might jump on the sale prices tomorrow with my fresh august trades if it looks like it's going to crack off another negative 2% burner.

I'm going to wait til I see it hit either the 40 or 50 RSI and turn back up, good chance it will for at least one last run, per chart blogs I read.

Originally Posted by alevin

I'm going to wait til I see it hit either the 40 or 50 RSI and turn back up, good chance it will for at least one last run, per chart blogs I read.

can you explain what is RSI? and what are the key levels? does anybody here post that signal often?

If you look at the chart I posted, the upper box with the long linear squiggle is labelled RSI (RSI stands for relative strength indicator, pretty standard indicator). It varies between 0-100. Over 50, you're on fairly safe ground, especially if the squiggle is pointing up towards the 100 level.

In bear market, the line dropped below 20 and coming back upover 20 you're on safe ground, below 30 and coming back up is relatively safe ground in a bear market. In a bull market, drop usually stops at 40 and turns back up. Over 70 and the market is overbought. 80 becomes very risky. doesn't mean will turn down immediately but more likely than not in not too distant future.

I use it with other indicators, not all by itself.

I like using weekly or monthly chart for bigger trend picture, daily chart for making entry/exit decisions short term. still more an observer than a player.

oh. i was looking at the middle part where it always just keeps going up. it still don't make no sense. i like jth's cartoon charts, but sometimes i wish he would just say 'buy' or 'sell' instead.

Here, b. Definition of what RSI means. Maybe reading the definition will help it start to make sense.
Relative Strength Index (RSI) [ChartSchool]

"Little sister, don't do what your big sister done." That's from a song from somewhere.

Ahhh birchie. good to hear from you, but now I feel like burro. Do you mean don't wait to buy the dip? or do you mean don't take the plunge because the waters going to get deeper and better if I wait?

I think the storm may have passed and now is the time to build on your base. These crazy things happen out of nowhere and punish those trying to do right - there is much more to this mega trend secular bull yet to stampede.