Thursday, November 5, 2009

Today's Market

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A.) Prices have moved through all the EMAs. Today they printed a very strong bar.

B.) Prices moved through support but by very little. That brings up an interesting question: when is a trend break a real trend break? There is no easy answer, although most people have their own rule of thumb. Personally, I like at least a 1% break -- that is, prices move at least 15 after they break the trend. Here prices came to about that level on the first day. But notice the second day of post-trend break trading -- prices printed a spinning top. This is a very weak candlestick. In other words, there wasn't much follow-through.

C.) The MACD is approaching the point where it will give a buy signal.