Market Watch for week of July 13, 2009

[billhart22]

Here is an example of the three day rule, and it is a loose one. Look at both of the two runs. They gapped fast. The first one took how long before dropping? Three days.

The second run..gapped up fast again, but on day three the indicator was oscillating, which would have been the time to get out, before day four when it officially dropped.

In addition, look at day four....tons of volume and trying to make its way up but failed. When you have a stock that is oscillating with peaks and downs and tons of volume...the honeymoon is over.

These are just general observations.

[Sean]

what is the link for the stock market game again?

[billhart22]

The blue arrow follow the three day rule and the greens are official runs. Compare volumes during each of these intervals.

The second run in BCLE was much more sustained, as it grew more naturally.

[Sean]

www.google.com typed in :
simulator site:http://siriusbuzz.com/forum/showthread.php?t=2279

found it http://www.chartgame.com/

[Sean]

wow... how do i post a screenshot...
i'm not even joking i just batted 100% on this game just by using my one new candle stick pattern i just learned

[ray]

Hey Bill ,Having a problem with the mm,s ...no ice...lol

[Sean]

http://img169.imageshack.us/i/seanchartgame.jpg/
look closely at all the buys and sells, they're really good

[billhart22]

Hey Bill ,Having a problem with the mm,s ...no ice...lol

Who, me or you? I have ice, but I left it in the freezer.

I am trying to make a point that day two is the time to really watch the gap and volume.

Currently, I am only doing shots. I can gauge the buzz better. When I use ice cubes it sneaks up on me and wipes me out. There is nothing worse than waking up and the computer monitor looks like an hallucination.

You are up late on Friday night..have you been into the mm?

[Dr. Dave]

Back to the three day rule again. It doesn't always apply, but it does so many times.

The first day a stock takes off, everybody is all excited and people are cramming money into it.

The second day, everybody is convinced that the mother-lode is coming.

The third day, the smart traders are getting out and the newbies and the greedy are throwing their money in.

Day four, after the stock starts falling, people are convinced that the stock is going to fly up again......................wrong!

I think the sharper the gap up, the more dangerous for disappointment. If a stock rises at a natural level, day by day, then you have something to work with.

If it gaps up and skyrockets too quick it will come down again.

I am going to post some charts to explore this with comments on the top of the post before the charts themselves.

Take a look and see what shakes with this "not always accurate rule".

If you want to see it all play out, find a chart like one of those that has a larger presence on a message board and read the posts that surround a spike, or even go to the siri intraday threads here, and read the posts on the big spikes... You'll see it in action.

[billhart22]

Ray and I are the Makers Mark brothers. We both drink it and are damn proud of it! lol.

This summer time trading is slow, but it will work out. This last March was a lot of fun. While everybody was busy wringing their hands, we were having a ball.

Bad news is good news in this business a lot of the time.