Draw a line at aug 9th to oct 18. That is the upper part of the channel. Then extend the channel through oct 7th.
The trend is a little moe down, but about to reverse. It's the channel of the TSI. Very powerful indicator. It confirms what I didn't know but could only speculate on. Were about to reverse of that low end of the TSI channel into the Santa Rally next week and into December.
Milton....please comment here on what we are not seeing...at least me anyway...it looks to me that once the tsi goes below zero most the downward move is done...additionally were entering one of the strongest periods of the yr....arent going long puts kind of dangerous here?....comment on that chart..thanks
Milton will be back to comment on how he is reading the TSI however, I can speak on the plays.
All of the plays that we have entered the past few months have averaged between 1-4 days. Most of the plays we make will only look right in hind-sight but, that is the nature of the market. Once that you study price action over and over you will soon discover what you already knew which is, that price is what is creating the chart, the TSI, the MACD, and everything else that some people use that in reality is only making the decision to pull the trigger that much harder.
Price action is where it's at.
With that being said crusinthrulife, as we approach the 11,200-11,250 area, this is where we are looking to place the puts. We are looking at a max top of 11,400'ish in the short term. We are placing calls around the 11,000 area. Now keep in mind we also are waiting for the option price to reflect a little bit of discount before purchasing, we can talk about that a little more after Milton explains his reasoning behind the TSI, which I am also interested in hearing :)
For me in the short term it's as simple as this:
11,000-11,050-Bull 11,200-11,250-Can't break through-Bear, Breaks through and holds-Bull 11,400-11,450-Bear