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Posts: 5,158
Reply with quote  #1 
2015-07-15 15:59:56 fib1618: good day
2015-07-15 16:00:02 fib1618: how is everyone today?
2015-07-15 16:01:43 rite01 G857: Doing good here!
2015-07-15 16:03:50 fib1618: been shopping all day on Amazon...
2015-07-15 16:04:06 fib1618: anyone who reads this should buy the's going to the moon [wink]
2015-07-15 16:04:26 rite01 G857: Good to know thanks
2015-07-15 16:05:05 rite01 G857: Have they started to make a profit yet?
2015-07-15 16:05:27 fib1618: doesn't matter to me
2015-07-15 16:05:39 fib1618: people are buying hand over fist though
2015-07-15 16:05:46 fib1618: Prime is the best deal out there bar none
2015-07-15 16:06:00 fib1618: Black Wednesday today
2015-07-15 16:06:13 fib1618: the sale is bigger than Black Friday
2015-07-15 16:06:21 fib1618: and you don't have to pay any freight
2015-07-15 16:06:31 fib1618: win win
2015-07-15 16:06:36 rite01 G857: Too bad stocks do not have a McClellan component like the index's do
2015-07-15 16:06:43 fib1618: yes they do
2015-07-15 16:06:57 fib1618: you just don't have the tool itself
2015-07-15 16:07:17 fib1618: but if you apply a 19 day and 39 day EMA to any stock what do you have?
2015-07-15 16:07:40 rite01 G857: The breadth MCO?
2015-07-15 16:07:55 fib1618:'s sister...the MCSUM
2015-07-15 16:08:15 rite01 G857: That's right - I knew that
2015-07-15 16:08:25 fib1618: just apply the same techniques that you learn in here and you're good to go
2015-07-15 16:08:35 fib1618: this is why it's not only important to understand the analytical tool
2015-07-15 16:08:43 fib1618: but also what it represents
2015-07-15 16:08:48 fib1618: and how it's calculated
2015-07-15 16:10:08 fib1618: OK...any questions or comments before we get started??
2015-07-15 16:10:47 rite01 G857: Nope not yet
2015-07-15 16:12:25 fib1618: OK...let's get started then
2015-07-15 16:12:58 fib1618: as we expected on Tuesday
2015-07-15 16:13:12 fib1618: the NYSE CO breadth MCO found resistance at the +50 level and moved lower today
2015-07-15 16:13:27 fib1618: looking at the components
2015-07-15 16:13:43 fib1618: and we see that the 5% Trend is back below its zero line because of this pullback
2015-07-15 16:13:59 fib1618: as the 10% begins its obligatory move toward the zero line
2015-07-15 16:14:07 fib1618: with this current configuration
2015-07-15 16:14:29 fib1618: we are now out of sync between the MCO and the Components
2015-07-15 16:14:43 fib1618: and therefore back to a corrective sequence
2015-07-15 16:15:15 fib1618: putting ruler to monitor
2015-07-15 16:15:53 fib1618: and we see that we are now fighting overhead resistance of the declining tops line that has been controlling the pattern from the late May period on the NYSE CO breadth MCSUM
2015-07-15 16:16:08 fib1618: so far then...all expected within the context of a trading range
2015-07-15 16:16:32 fib1618: moving to the NYSE Composite breadth MCO
2015-07-15 16:16:52 fib1618: and here too we found natural resistance at the +50 level and pulled back today
2015-07-15 16:17:48 fib1618: but it was still enough of a push forward to where we saw a close right on the longer term declining tops line from the April highs in the NYSE Composite breadth MCSUM
2015-07-15 16:18:07 fib1618: so...we're in sync here as far as the set up is concerned
2015-07-15 16:18:28 fib1618: looking at the NYSE Composite MCO components
2015-07-15 16:18:54 fib1618: and we see that the 5% Trend closed right at its zero line fulfilling the expectation of a snapback today
2015-07-15 16:19:24 fib1618: and now we'll see if the buyers can continue to build on this past weeks reversal now...or it will be saved for later on
2015-07-15 16:19:51 fib1618: looking at the NASDAQ breadth MCO
2015-07-15 16:19:56 fib1618: and it also pulled back today
2015-07-15 16:20:13 fib1618: but as we dig deeper and look at the components
2015-07-15 16:20:25 fib1618: we see that the 5% found resistance at its zero line
2015-07-15 16:20:42 fib1618: while the 10% Trend snapped all the way back to its zero line today
2015-07-15 16:21:00 fib1618: so a bit of an indecision point is upon us
2015-07-15 16:21:09 fib1618: which way do we go over the near term?
2015-07-15 16:21:43 fib1618: given that all we've done so far is met the technical expectation of a price pattern snapback to a previous trendline
2015-07-15 16:22:05 fib1618: some additional backing and filling from this snapback point would be a reasonable expectation near term
2015-07-15 16:22:22 fib1618: and for the NASDAQ
2015-07-15 16:22:33 fib1618: a probable closing of Monday's upside gap at the open
2015-07-15 16:23:03 fib1618: moving to the NDX breadth MCO
2015-07-15 16:23:13 rite01 G857: I don't have the 10% back to -0- it's at +32 on my chart components
2015-07-15 16:23:33 fib1618: and here we see that we continue to show better strength than the total NASDAQ market
2015-07-15 16:23:38 fib1618: are you looking at volume?
2015-07-15 16:23:49 fib1618: because the 10% is at +3
2015-07-15 16:24:11 rite01 G857: no
2015-07-15 16:24:24 fib1618: +23 on volume
2015-07-15 16:24:39 rite01 G857: sorry just looking at wrong chart
2015-07-15 16:24:44 fib1618: try refreshing your chart
2015-07-15 16:24:45 fib1618: OK
2015-07-15 16:25:02 fib1618: do you have your charts colorized for easier identification?
2015-07-15 16:25:14 fib1618: (color around the borders)
2015-07-15 16:25:41 rite01 G857: only the NYSE 2nd chart that has helped
2015-07-15 16:26:00 fib1618: if I remember correctly
2015-07-15 16:26:20 fib1618: all of the same color borders used by Carl at DP are the same on the upload
2015-07-15 16:26:34 fib1618: so unless you changed it...they should all be colorized as before
2015-07-15 16:26:38 fib1618: NYSE is yellow
2015-07-15 16:26:45 fib1618: NASDAQ is Blue
2015-07-15 16:26:47 fib1618: etc
2015-07-15 16:27:23 rite01 G857: I will work on that
2015-07-15 16:27:28 fib1618: back to the NDX
2015-07-15 16:27:43 fib1618: and we see that we continue to show better strength of pattern
2015-07-15 16:28:12 fib1618: as the NDX breadth MCO pretty much met our expectation from yesterday of snapping back to the +50 level today
2015-07-15 16:28:24 fib1618: finishing the day with a +55
2015-07-15 16:28:37 fib1618: so we can "allow" a bit more weakness on Thursday
2015-07-15 16:28:44 fib1618: but at the same time
2015-07-15 16:28:54 fib1618: this textural move is now complete
2015-07-15 16:29:04 fib1618: and we can bounce higher on Thursday
2015-07-15 16:29:19 fib1618: how much higher will then determine on what we should expect for the rest of the month
2015-07-15 16:29:26 fib1618: with OPEX coming in on Friday
2015-07-15 16:29:51 fib1618: and when we look at the NDX breadth MCSUM
2015-07-15 16:30:15 fib1618: we see that it will take a move higher by Friday in order to break back above the -250 level
2015-07-15 16:30:38 fib1618: where we also have horizontal pattern resistance with the June lows
2015-07-15 16:30:52 fib1618: so a rather important "character" day coming up near term
2015-07-15 16:31:24 fib1618: moving to the SPX breadth MCO
2015-07-15 16:31:55 fib1618: and here too we saw an obligatory snapback to the +55 level as well
2015-07-15 16:32:19 fib1618: looking further at the one year pattern
2015-07-15 16:32:52 fib1618: and we also see that a snapback to the previous highs of the last 4 months comes in at about the +42 level
2015-07-15 16:33:21 fib1618: so we can "allow" a bit more corrective weakness here and still maintain our new found buoyancy
2015-07-15 16:33:57 fib1618: the OEX breadth MCO is coming off a highly "overbought" reading of +85
2015-07-15 16:34:08 fib1618: and settled today with a +67 reading
2015-07-15 16:34:49 fib1618: which is pretty much in between the February highs at +71 and the April highs of +62
2015-07-15 16:35:11 fib1618: so a bounce here wouldn't be surprising off this zone of average support
2015-07-15 16:35:40 fib1618: coming off a +86 reading on Tuesday
2015-07-15 16:35:49 fib1618: the Dow breadth MCO has now snapped back to the +75 level
2015-07-15 16:36:00 fib1618: where natural support of pattern lies
2015-07-15 16:36:25 fib1618: so here too...this would be a good spot for a reactive bounce off the thrust highs
2015-07-15 16:37:01 fib1618: and unless there is some of ambush by the sellers on Thursday
2015-07-15 16:37:14 fib1618: the Dow breadth MCSUM will be moving up and through the -250 level
2015-07-15 16:37:17 fib1618: no less
2015-07-15 16:37:42 fib1618: we should have enough thrust right now to move up and through the OEX breadth MCSUM zero line
2015-07-15 16:39:27 rite01 G857: last three days haven't seen gap fills in DOW MCSUM since last November
2015-07-15 16:42:03 fib1618: let's see
2015-07-15 16:42:31 fib1618: you're talking the expansion gaps to the upside?
2015-07-15 16:42:39 rite01 G857: yes
2015-07-15 16:42:52 fib1618: what does this tell you?
2015-07-15 16:44:02 rite01 G857: That money is moving in and the 19 is moving up faster than 39 but both are heading up
2015-07-15 16:44:19 fib1618: sounds like you know your stuff! [smile]
2015-07-15 16:44:33 fib1618: and not only is it moving in
2015-07-15 16:44:42 fib1618: but it's moving in at an accelerated rate
2015-07-15 16:44:49 fib1618: and when you accelerate
2015-07-15 16:44:56 fib1618: the further your distance
2015-07-15 16:45:21 fib1618: just like being in a car on a I 35
2015-07-15 16:45:29 fib1618: you punch the engine
2015-07-15 16:45:44 fib1618: and even if you take your foot off the accelerator
2015-07-15 16:45:58 fib1618: you still move forward
2015-07-15 16:46:27 rite01 G857: yes getting it now little by little
2015-07-15 16:46:42 fib1618: [smile]
2015-07-15 16:47:09 fib1618: moving to the MID chart
2015-07-15 16:47:21 fib1618: and we see that snapback resistance held today
2015-07-15 16:47:45 fib1618: as we closed below both the closing highs of Monday and Tuesday's intraday lows
2015-07-15 16:48:23 fib1618: this would suggest that we're likely to move lower toward a test of Monday's gap lows
2015-07-15 16:49:47 fib1618: looking at the MID breadth MCO
2015-07-15 16:50:08 fib1618: and here we had our expected snapback toward the +25 level
2015-07-15 16:50:36 fib1618: while the MID breadth MCSUM is snugged up to its zero line with a -10 reading
2015-07-15 16:50:40 fib1618: so what will it be?
2015-07-15 16:50:59 fib1618: will we fail here and close Monday's price gap?
2015-07-15 16:51:31 fib1618: or do we have a new push higher and take out yesterday's high point in the MCO which would then allow the MCSUM break back above its zero line?
2015-07-15 16:51:43 fib1618: we know what needs to be done
2015-07-15 16:51:56 fib1618: just have to see what the participants decide to do
2015-07-15 16:52:16 fib1618: not surprising again
2015-07-15 16:52:33 fib1618: that we see the SML breadth MCO snapping back toward its zero line today
2015-07-15 16:52:46 fib1618: after bringing up the rear of the last several days of "relief"
2015-07-15 16:53:06 fib1618: this has kept the SML breadth MCSUM just above its zero line with a +11 reading
2015-07-15 16:53:18 fib1618: so we'll call this market neutral for now
2015-07-15 16:53:28 fib1618: though looking at the components
2015-07-15 16:53:44 fib1618: we see that the 10% has fulfilled a snapback to the 5% Trend today
2015-07-15 16:54:13 fib1618: and since we have maintained our bullish crossover configuration with this test
2015-07-15 16:54:38 fib1618: the odds are more than 60% that we'll see a bounce higher as soon as Thursday with the need for the buyers to take out the June highs in the MCO to give the "all clear"
2015-07-15 16:55:47 fib1618: and a snapback toward the +25 level in the TM breadth MCO now complete
2015-07-15 16:56:00 fib1618: while the 5% Trend found technical resistance at its zero line
2015-07-15 16:56:09 fib1618: taking ruler to monitor on the TM breadth MCSUM
2015-07-15 16:56:36 fib1618: and we see that the we are still below the accelerated declining tops line
2015-07-15 16:56:43 fib1618: so still a lot of work to do there
2015-07-15 16:56:46 fib1618: so...
2015-07-15 16:57:02 fib1618: the next day or two we're calling "character" days
2015-07-15 16:57:38 fib1618: as it will take a firm amount of buying from this juncture to push the supply and demand imbalance of last week from one of the sellers in control to that of the buyers taking the upper hand
2015-07-15 16:57:55 fib1618: usually when this happens
2015-07-15 16:58:26 fib1618: it's done so that leaves no doubt as to the market's decision
2015-07-15 16:58:52 fib1618: and provides us with a pulse to work with toward our market blueprint
2015-07-15 16:59:06 fib1618: an important juncture...but not a key one
2015-07-15 16:59:25 fib1618: as we already know that the price lows of last week are important ones
2015-07-15 16:59:45 fib1618: and now it's a matter of which road we take to get to see the "wizard"
2015-07-15 16:59:53 fib1618: the high road or the low road
2015-07-15 17:00:01 fib1618: just a matter of timing
2015-07-15 17:00:10 fib1618: moving to the sector McClellan's
2015-07-15 17:00:39 fib1618: and we see that the XLY breadth MCSUM is in the process of moving up and through the +250 level
2015-07-15 17:03:13 fib1618: also of note is that with the higher highs in the XLY breadth MCO
2015-07-15 17:03:32 fib1618: we'll call Monday's gap as that of a "break-away" variety
2015-07-15 17:03:46 fib1618: meaning that it will only be partially filled...if at all
2015-07-15 17:04:09 fib1618: so any fill there would be a bearish event for the short term
2015-07-15 17:04:42 fib1618: so we'll allow for a snapback toward the area of the breakout
2015-07-15 17:04:45 fib1618: but that's all
2015-07-15 17:04:55 fib1618: easy to trade based on this
2015-07-15 17:05:21 fib1618: you either enter on the pullback with a stop on any fill of the gap
2015-07-15 17:05:27 fib1618: and if traded
2015-07-15 17:05:43 fib1618: adding another allotment to the position on any higher price high
2015-07-15 17:06:12 fib1618: moving to the XLP breadth MCO
2015-07-15 17:06:27 fib1618: and here we're showing some bearish divergence with yesterday's new all time highs
2015-07-15 17:06:53 fib1618: but the intraday pattern today did find horizontal support at what was the old highs
2015-07-15 17:07:19 fib1618: we have 5 bottoms above bottoms in the XLP MCO structure holding support
2015-07-15 17:07:41 fib1618: so we'll let the pattern "show us" its true intentions
2015-07-15 17:07:54 fib1618: and wait for a little more strength before moving in
2015-07-15 17:08:14 fib1618: hard reversal in the XLE price action today
2015-07-15 17:08:47 fib1618: which isn't too surprising as the XLE breadth MCSUM is highly negative right now with a -1197 reading
2015-07-15 17:09:23 fib1618: this suggests that any bottoming action here is going to take some time to provide a platform for the price chart
2015-07-15 17:09:57 fib1618: which is why we'll continue to look to other avenues as far as a long positions are concerned
2015-07-15 17:10:13 fib1618: having already covered our shorts on yesterday's breadth thrust higher in the XLE breadth MCO
2015-07-15 17:10:33 fib1618: new recovery high close in the XLF today
2015-07-15 17:11:06 fib1618: which was confirmed by both the XLF breadth MCO which is now at a +95
2015-07-15 17:11:17 fib1618: and a move up and through the zero line on the XLF breadth MCSUM
2015-07-15 17:11:31 fib1618: another buy signal there
2015-07-15 17:12:07 fib1618: though with the 10% component over extended by ways of being at the +186 level
2015-07-15 17:12:26 fib1618: it wouldn't be too surprising if we see some digestion for the next couple of days before proceeding
2015-07-15 17:12:50 fib1618: another new all time high close in the XLV
2015-07-15 17:12:59 fib1618: though we did have an exhaustion price bar today
2015-07-15 17:13:26 fib1618: and it's no wonder since the XLV breadth MCO was in nose bleed territory with a +99 reading on Tuesday
2015-07-15 17:13:57 fib1618: note also that we closed right on the +500 line today in the XLV breadth MCSUM
2015-07-15 17:14:46 fib1618: leaving us within 2 trading days of probably moving up and through the declining tops line seen on the MCSUM chart
2015-07-15 17:15:04 rite01 G857: Negative divergence MCO means what at this point
2015-07-15 17:15:27 fib1618: on the XLV?
2015-07-15 17:15:32 fib1618: there is none
2015-07-15 17:16:03 fib1618: which sector chart are you looking at?
2015-07-15 17:16:28 rite01 G857: Never mind .. I've got to change chart colors first thing tomorrow
2015-07-15 17:16:34 fib1618: [smile]
2015-07-15 17:16:36 fib1618: no problem
2015-07-15 17:17:09 fib1618: you'll find them under the "color scheme" box on the chart page
2015-07-15 17:18:11 fib1618: looking at the XLI breadth MCO
2015-07-15 17:18:34 fib1618: and here we see that found natural resistance at the +77 level on Tuesday
2015-07-15 17:18:44 fib1618: and moved lower toward the +50 level today
2015-07-15 17:19:02 fib1618: settling at a +44
2015-07-15 17:19:48 fib1618: which is where we had two previous points of resistance in June
2015-07-15 17:20:02 fib1618: so a bounce higher here would be indicated
2015-07-15 17:20:35 fib1618: also on a positive side
2015-07-15 17:20:45 fib1618: we did move up and through the -250 level today
2015-07-15 17:21:14 fib1618: so we'll see if we get some additional sponsorship in this basket of issues on the next go round
2015-07-15 17:21:46 fib1618: the XLB breadth MCO found natural resistance at the +52 level
2015-07-15 17:22:06 fib1618: and finished the day lower at the +11 level
2015-07-15 17:22:19 fib1618: not a good thing for this sector as it continues to look heavy
2015-07-15 17:22:50 fib1618: the XLK breadth MCO found its resistance on Tuesday at the +74 level
2015-07-15 17:23:21 fib1618: and finished the day today with a simple snapback to another 25 multiple at a +48
2015-07-15 17:23:33 fib1618: so a near term bounce is expected there as well
2015-07-15 17:24:05 fib1618: and the XLU breadth MCO continues to hold on to its bullish textural structure
2015-07-15 17:24:10 fib1618: as it moved higher again today
2015-07-15 17:24:23 fib1618: settling at a +80
2015-07-15 17:24:42 fib1618: this would indicate that the current triangle configuration we see on the chart will likely break north in the next day or two
2015-07-15 17:24:49 fib1618: but on the negative side
2015-07-15 17:24:59 fib1618: if we put our Elliott hat on for a moment
2015-07-15 17:25:32 fib1618: triangle formations in this position of a bounce tend to be more counter trend moves than they are bottoming moves
2015-07-15 17:26:01 fib1618: so we'll keep an eye on this one as it approaches its upside target of $44.50
2015-07-15 17:26:04 fib1618: so...
2015-07-15 17:26:17 fib1618: still a lot of crosscurrents going on right now
2015-07-15 17:26:36 fib1618: which is pretty much standard fare when prices are corrective mode
2015-07-15 17:27:02 fib1618: and this helps to reaffirm our expectation that we remain in a trading least for now
2015-07-15 17:27:33 fib1618: but with whispers that we'll likely stay firm during this particular sequence
2015-07-15 17:27:45 fib1618: let's see how the OBV's are doing
2015-07-15 17:28:42 fib1618: we had our expected pull back today from Tuesday's climactic numbers in the OEX and Dow CVI's
2015-07-15 17:28:50 fib1618: the STVO's are now "overbought"
2015-07-15 17:29:05 fib1618: while the VTO's are staying neutral on the subject
2015-07-15 17:29:23 fib1618: wouldn't be surprising that after any rally attempt on Thursday
2015-07-15 17:29:46 fib1618: that we'll likely consolidate/digest any gains made on Friday...maybe into Monday
2015-07-15 17:30:02 fib1618: NYSE TRIN at 1.30
2015-07-15 17:30:11 fib1618: Open 10 at .98
2015-07-15 17:30:39 fib1618: NASDAQ TRIN at .73
2015-07-15 17:30:48 fib1618: lot of covering/buying there today
2015-07-15 17:30:57 fib1618: Open 10 at .97
2015-07-15 17:31:14 fib1618: TM TRIN neutral at .91
2015-07-15 17:31:29 fib1618: Open 10 at 1.00
2015-07-15 17:31:33 fib1618: so....
2015-07-15 17:31:43 fib1618: as we suspected on Tuesday
2015-07-15 17:32:03 fib1618: the reflex/relief rally likely exhausted itself on Tuesday
2015-07-15 17:32:27 fib1618: and now a pattern of choppy, volatile digestion is expected for the next couple of days
2015-07-15 17:32:48 fib1618: with many of the MCO's having met their obligation of a snapback today
2015-07-15 17:32:57 fib1618: we should see a bounce higher on Thursday
2015-07-15 17:33:10 fib1618: with another period of digestion likely Friday into Monday
2015-07-15 17:33:37 fib1618: all depending on what we get on Thursday will pretty much secure our blueprint for the rest of the month
2015-07-15 17:34:07 fib1618: and that should do us well since we have 3 chat days next week to review our plan in absence of any chat session the following week
2015-07-15 17:34:14 fib1618: anything else?
2015-07-15 17:34:17 rite01 G857: I Doubled checked and XLV does have a negative MCO divergence today down to 70.37 What would that mean?
2015-07-15 17:34:18 fib1618: oh...the BETS
2015-07-15 17:34:19 fib1618: one moment
2015-07-15 17:35:20 fib1618: -25
2015-07-15 17:35:31 fib1618: so another gain of 5 points from yesterday
2015-07-15 17:35:42 fib1618: we need a -20 or higher for a "go to cash" position
2015-07-15 17:36:05 fib1618: so a good day on Thursday would probably do it
2015-07-15 17:38:06 rite01 G857: I have a couple question before we go
2015-07-15 17:38:12 fib1618: OK..shoot
2015-07-15 17:38:16 rite01 G857: I doubled checked and XLV does have a negative MCO divergence day today down to 70.37 What would that mean?
2015-07-15 17:41:09 fib1618: and the second question?
2015-07-15 17:42:05 rite01 G857: two more --It's called a break-away gaps when MCO also goes to new recent highs? and Regarding XLE when the 10 and 5% EMA are going way and the MCO's are trending the other.  Always best to follow the EMA?
2015-07-15 17:42:10 fib1618: mean that prices closed higher but the MCO moved lower?
2015-07-15 17:42:15 fib1618: that is not divergence
2015-07-15 17:42:17 rite01 G857: Yes
2015-07-15 17:42:27 fib1618: divergence is comparable peaks between both the MCO and price
2015-07-15 17:42:34 fib1618: remember
2015-07-15 17:42:53 fib1618: that we saw a very high reading on the MCO on Tuesday of a +99
2015-07-15 17:43:05 fib1618: so internally, that it not sustainable
2015-07-15 17:43:14 fib1618: but since we had this kind of high reading
2015-07-15 17:43:36 fib1618: the MOMENTUM of the fuel used is still moving prices forward even if we take our foot off the accelerator pedal [wink]
2015-07-15 17:44:00 rite01 G857: on a daily bases this divergence has picked tops and bottoms more often than not - at least that my take.
2015-07-15 17:44:09 rite01 G857: Daily Divergence
2015-07-15 17:44:15 fib1618: it's not the same thing
2015-07-15 17:44:25 rite01 G857: ok
2015-07-15 17:44:34 fib1618: you would have to draw up a chart so I can see what you're seeing
2015-07-15 17:44:45 rite01 G857: will do by next session
2015-07-15 17:44:49 fib1618: but divergence does not come off a recent high or now
2015-07-15 17:45:09 fib1618: that's like saying that when a price moves lower after making a new high that the trend is now down when it's only a corrective process
2015-07-15 17:45:15 fib1618: so maybe you're confusing divergence with deceleration?
2015-07-15 17:45:39 fib1618: as it takes more than one point of divergence before this same momentum factor is exhausted
2015-07-15 17:45:48 fib1618: take the times in which you've seen the MCSUM peak out
2015-07-15 17:46:01 fib1618: move from a +750 to a +250 (for example)
2015-07-15 17:46:12 fib1618: and once the MCSUM turns up again we have new price highs
2015-07-15 17:46:33 fib1618: so it takes time to turn the cruise ship around after it's reached top speed
2015-07-15 17:46:51 fib1618: as far as the other questions...let me look at them
2015-07-15 17:47:58 fib1618: the "break-away" status is given more for where it lies in relation to the ongoing price pattern structure from which it broke out from
2015-07-15 17:48:21 fib1618: the MCO CONFIRMS this gap as being legitimate by moving to new highs with the breakout
2015-07-15 17:48:23 fib1618: make sense?
2015-07-15 17:48:31 rite01 G857: Yes
2015-07-15 17:48:37 fib1618: last question...let me see
2015-07-15 17:49:21 fib1618: it's better to follow both the EMA's and the MCO because they are products of each other
2015-07-15 17:49:29 fib1618: the bottom line there is
2015-07-15 17:49:40 fib1618: you want both of the components and the MCO on the same side of their zero lines
2015-07-15 17:49:46 fib1618: if either/or are not
2015-07-15 17:49:53 fib1618: then prices can only chop
2015-07-15 17:49:57 fib1618: they can't trend
2015-07-15 17:50:07 fib1618: more to the point, they don't have the ability to trend
2015-07-15 17:50:20 fib1618: the two EMA's provide the MCO number
2015-07-15 17:50:45 fib1618: it's the difference in the speed in which the two EMA's are moving in relation to both the money flow line AND to each other
2015-07-15 17:50:55 fib1618: keep it simple
2015-07-15 17:51:10 fib1618: when you look at the MCO/MCSUM data
2015-07-15 17:51:30 fib1618: immediately draw up a chart in your mind of what they represent
2015-07-15 17:51:43 fib1618: without direction, speed doesn't matter
2015-07-15 17:52:09 fib1618: without knowing the speed, direction becomes a non entity
2015-07-15 17:52:43 fib1618: good questions
2015-07-15 17:52:48 rite01 G857: ok will go over this and let it sink in.
2015-07-15 17:52:56 rite01 G857: last question
2015-07-15 17:53:04 fib1618: you're asking good questions
2015-07-15 17:53:08 rite01 G857: The break away gap mentioned earlier are the ones not likely to be filled?
2015-07-15 17:53:18 fib1618: correct
2015-07-15 17:53:28 fib1618: they can only be partially filled
2015-07-15 17:53:32 fib1618: but they can not be closed
2015-07-15 17:53:41 fib1618: otherwise they become pattern gaps
2015-07-15 17:53:43 fib1618: and in that case
2015-07-15 17:54:00 fib1618: a breakout failure is created which then tells us that something different is going on
2015-07-15 17:54:04 fib1618: and we adjust to that
2015-07-15 17:54:26 fib1618: I'll have to do a primer on gap theory one day...always interesting
2015-07-15 17:54:35 rite01 G857: Thank you have a good night... no have a good weekend as well
2015-07-15 17:54:49 fib1618: thank too and to everyone else
2015-07-15 17:55:01 fib1618: and we'll do this all again next Tuesday...hopefully in our new room
2015-07-15 17:55:03 fib1618: good night
2015-07-15 17:55:09 rite01 G857: Good night all!

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