Widening diagonals - Trading 101

[#1]

The Dow and Alsi are both presently trading within a widening diagonal structure. They are bearish structures BUT they do at times display periods of seemingly inexorable bullishness with sustained moves up. This is what is tricking some of the uber bulls here who believe 35000 is on the cards. Yesterday we got a glimpse of just how bearish this structure can be - the bears had the bulls by the scruff on the neck yesterday. Remember bears like to soften up their prey for the final kill and this 600 point move is just the start...they will let go for a while now... we reached the bottom end of the widening diagonal and will now move up again. How high?...possibly all the way to the upper resistance or to create a right shoulder equal to the left at 30750. The concern for anyone looking for a more sustained move up should be that DOW has almost already almost completed the final leg up of its move to the digonal resistance and you can be sure that we will follow when the DOW turns.

[#2]

just wanted to add that that 30750 level could easily be exceeded and the structure would still be in tact...there is a channel that extends well beyond that..the thinking is that because leading markets are so far ahead of us this is a possible scenario.

[#3]

Alsitrdr, can you please enlighten me on which highs and lows do I have to connect to draw the diagonal, not sure I see the right pattern

[#4]

yes sure...04/01 11/01 and 23/01 thats the top and 16/01 and 07/02 thats on hourly..

[#5]

if you have problems identifying it heres a video...http://www.realchartist.com/videos/free-videos/321-8-feb-2012-widening-diagonal-may-need-to-complete...

[#6]

Thanks, I've got it

[Rams]

yeah, ABT(AlsiBADtrader, your post was pitched like a typical salesman..." the bears had the bulls by the scruff on the neck yesterday. Remember bears like to soften up their prey for the final kill.." And this, well, this just proves what a sad Markie you are:"you can be sure that we will follow when the DOW turns." Now that must be a brilliant revelation for all to digest...did the waves tell you that or you did your own research?

[#8]

Sewage

[Rams]

yes, have to agree with you ABT, the stink started when you faked your way into this forum...you seem to attract sewerage...

[#10]

sewage spill in the widening diagonals aisle...can we get a cleaner and a mop please?

[#11]

Rams get yourself a life. If aint got nothing intelligent to say just keep moving along.

[Rams]

ABT, i told you that you seem to have a skill in attracting sewage or sewerage...seem to be coming from your website.need to send someone over there to plug the leak...bit it will keep on coming if you still here!

[richardw]

I gotta ask you though...why keep up the daily hassling? He won't leave just because you target him, so no (logical) reason to do it. There's likely more benefit in just getting on with discussing the trading. Target his points if you like, but maybe tone it down? Use it, don't use it, but as an Ozzie friend says "there's no money in it".