Tuesday, November 10, 2009

Annotated Russell 2000


  1. Anonymous7:44 AM

    Mr. Singer, thanks for these great charts and the time you put toward them. I have been using technicals for close to a decade but there's one thing I've never been able to answer.

    Mainly, in every pattern, trend line, support/resistance, is it better to use the high/lows of the body or the tail? I get the need for getting the most touching points, and the importance of closing prices. But occasionally I see marked charts using both body and tail points.

    Ex. your russel weekly chart above... the 525 neckline appears to use body and tail points. While the monthly chart above on the 680 neckline using mainly body points.

    So, whats more important from a technical basis, body points or tail points. And if its body points, how do you reconcile the need to go through some tails to mark the bodies?

    FWIW, Im more inclined to use the bodies since they are closing prices.

    Thanks for an answer, and again thanks for your work.

  2. @David,

    Do you use/prefer anything else to support your TA, sentiment, a/d ratio's, McCllelan summation, etc.? Just curious if you combine your work with other data. I've seen on some of your charts a MACD or RSI but I don't recall anything else.

    Still wondering if that IYR has a shot to $50, I'm watching, but not willing to put any money on it either way.

  3. @anonymous,

    I think that either approach is valid. Another words, try both and see how the prices unfold. A lot of times on long term monthly charts you will see more pronounced shadows because there is more time for things to reverse in either direction... I don't subscribe to any hard and fast rule... Maybe its because I am an artist but I consider this approach more subjective, and while it can work for me, it is hard to translate to others for use. You must just get whatever it is you can out of what I do and then use it in the way you see fit. Also, my busy schedule limits my time for hard core analysis etc, so I do what I can with the time I have...Thanks for your feedback...

  4. @ mcfearless,

    I do use pretty much all of those things, however, my day job being what it is, I can't get terribly in depth with all the other indicators, etc. in my analysis... Maybe if that changes I will be able to expand.. That being said, I am a big believer in sentiment as a driver of markets...

  5. @ mcfear

    nothing has changes the projection of IYR to 50, but if Karen's top gets exposed, I see no reason why it can't get there...