February 26, 2013
Uncategorized
By Geoff Bysshe
For weeks I've been showing our Day Trading Mastery Program members how powerful watching key market relationships can be. Below is the list of some of the recent rules / tactics we're looking at for knowing when the intra-day trend is likely to continue or reverse:
1. Currently, the IWM’s best represent the direction of the day
2. If EURUSD is moving significantly - stocks will follow
3. If TLT is up on fear – stocks will fall
Yesterday markets gapped higher, and the the DIA broke out of its multi-day range to new multi-year highs, but when it rolled over it was clear that there was big risk of the market topping out. As the market began to sell-off, everything was in gear for a big down day.
Look at the charts below and note how as DIA rolled over from the high of the day, the other 3 markets where already well ahead of it in moving in their respective directions that indicated the market was not ready. The lines on the chart represent the 30-minute opening ranges.
