Thursday Later Than Usual Wrap

Had some things to do yesterday afternoon gang and by the time I got them done I was plumb tuckered out - but better late than never (or at least I think so).

Took a position in AMR (again, yet again) and it proved profitable but also served to show yet another nifty concept regarding a stock's price - that moves are done in waves. Take a look at this daily 15-minute chart.



You will see this pattern repeated over and over again in both directions. It's why we traders sometimes are crossed up because we are waiting for the third wave and the bottom falls out instead. But if you watch for setups you can see that you can use this wave method to find afternoon plays that are sometimes better than those in the morning.

Friday should be a down day - The up/down ratio has crossed the divide and now sits at 64% while new 20 day highs are at 1422 and lows are printing 159. There is nothing left to buy and this market has to be bone weary and tired regardless of all the good earnings news. And that isn't really that good anyway.

The VIX remains neutral although I don't know how but the fact is a low VIX is not as important as a high one. The three sisters either finished the last hour red or as a topping doji. The three major indices all finished with topping doji as well. She's goin' down I tells ya she's goin' down ... which is not a good thing.

Mr. Magestic ("magestic - majestic + magic" - get it) never mind - the smartass coin is now 24 and 11 having nailed Thursday and for tomorrow says ---- heads - bull market. I'm not going against the coin.