(See "Wednesday's Prospects" for the first-round lists.)
Most potentials confirmed their signals in trading today, but a large number gave signals on charts that had the appearance of a retracement within a downward correction, what I call the Sucker Hook. Here's an example from the ACIW chart:
Click on chart to enlarge
|ACIW 60 days hourly bars
I next took my list and ran them through a 200-day moving average analysis. This is a classic form a chart analysis that provides a strong visual of the age of a trend.
Here's a chart of SPY, which tracks the S&P 500, with the 200-day moving average in red and my current Elliott wave count.
Click on chart to enlarge.
My shorter-term trading rules can be read here. And the classic Turtle Trading rules on which my rules are based can be read here.
Elliott wave analysis tracks patterns in price movements. The principal practitioner of Elliott wave analysis is Robert Prechter at Elliott Wave International. His book, Elliott Wave Principle, is a must-read for people interested in this form of analysis, as is his most recent publication, Visual Guide to Elliott Wave Trading.
Several web sites summarize Elliott wave theory, among them, Investopedia, StockCharts and Wikipedia.
See my post "Chart Analysis: Nomenclature" for an explanation of my method for labeling waves on the chart.
Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.