Trader Mike

This was another day that felt manipulated “propped-up” to me. $TICK was hitting extremely high levels (it hit 1440, 1500 and 1477 today) again today all to just keep the market at unchanged. Maybe now that the month-end (and year-end for many funds) games are over the market can go where it’s truly headed. It looks to me like we’ve got falling three methods patterns forming on the indices:

1. 1st day is a long black day.
2. Three small body candlesticks follow the 1st day. Each trends upward and closes within the range of the 1st day.
3. The last day is a long black …

We had another choppy day today. The stock market is back to its old tricks from *way back* in 2005 when it just traded opposite of oil. I hated that action then and I still hate it now. But what are you gonna do?

Although the indices ended higher the action over the last two days just seems like a pause in a downtrend to me. Normally when the indices are so oversold I’d be looking to go long but I’m just not ‘feeling’ the bull side right now. (Of course, I’ll play either side of the market depending on what my intraday indicators say.) The indices, and many stocks, seem to be forming something …

So Jim wants to know if Netflix “look like a good short or put candidate here.” This is a tough call for me. It would be much easier for me to call it a short if the 50-day moving average and the lower Bollinger Band weren’t so close by. In fact, the stock bounced off of both of those levels yesterday. On the other hand it’s broken what’s been its trendline for most of the year. It broke that uptrend while making what’s supposedly a reliable continuation pattern, the falling three methods. (Actually, it wasn’t exactly a falling three methods but it’s close enough for government work.)

Personally, I …