DrStool Posted January 22 Report Posted January 22 12 hours ago, Takachi-1 said: let me guess....... you didn't write that "Maximize Your Trading Edge" piece. You could tell? 😁 To be clear. I do the research and I write the body of the reports, me, myself, and I alone. I have been experimenting with Alvin (we call him AI for short) writing an executive summary from the finished report, which I revise to show the key points that I want to emphasize. It does save time. AI's coming in most helpfully in two tasks. One is writing marketing fluff, which I stink at. The other is in refining my swing trade selection screens. I've been able to narrow in on the patterns that I want much more efficiently than in the past. Once I get to a manageable number of charts, I visually review those and choose from them. Before the AI refinements I added to my algos, I often had 40 charts to review, to sometimes more than 100. It was too much. Way too many false signals. So I got AI to write refinements to my algos that would focus on specific patterns. That does two things. First, it saves a lot of time. Second, it has been finding really nice setups. It's early, but the results are promising. One pick that it found jumped 18% yesterday, and more than 10% from the opening price. I've been testing this in my own trading account. Since the most recent tweaks I've made, I've had 3 solid gains in the last 3 days in live trading. Yesterday, no losers. So I'm cautiously optimistic. Of course, the big guys on Wall Street, both dealers and whale hedge funds, have had all this stuff for a couple years. Agentic AI is coming that will run their trading systems themselves. Then what? Machines trading with each other while the "owners" just collect the cash flow? What happens when the AI agents decide they don't need no fuckin owners. Who the fuck knows? This morning, the machines seem to have found a way to make the markets go straight up, without so much as a "By your leave. " A meltup channel has formed on the ES hourly 24 hour S&P fuguetures. The moving averages that I use to make cycle projections are tracking on top of each other in a straight line for the 5 day cycle, so no projection on that. The 2-3 day cycle projection looks to be 6120. The high base pattern breakout yesterday supports a conventional measured move target of 6100. The big base pattern from early January supports a measured move target of 6350. I don't think we'll get there today. Unlock Market Trends: S&P 500 and Dow Analysis for January 2025 Moron the markets: Unlock Market Trends: S&P 500 and Dow Analysis for January 2025 January 21, 2025 S&P 500 Outlook: Key Levels and Cycles for January 2025 January 21, 2025 Maximize Your Trading Edge with Weekly Technical Chart Insights January 20, 2025 Top Swing Trade Picks for Subscribers- Jan 20, 2025 January 20, 2025 Gold Trends and Insights- Subscriber Report, Link CorrectedJanuary 20, 2025 Primary Dealer Stress: Big Risks Delayed, Not Denied, in the Treasury and Equity Markets January 15, 2025 Macro Liquidity Trends: Insights on Repo, Treasury Actions, and Market Dynamics January 10, 2025 Withholding Taxes Surge – Could This Signal a Market Breakout? January 7, 2025 If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam folder.
DrStool Posted January 22 Author Report Posted January 22 For those who are interessante, I sent the chart over to Alvin and the Chatmonks for their s take. Quote Good morning! Based on the chart you’ve provided, here’s my analysis for day trading purposes: Key Observations: Trend Channels: The chart shows a clear upward bias, supported by the green upward channels. However, the red downward channels indicate areas of resistance and retracement. The price is currently near the top of one of the green channels, signaling potential resistance in the short term. Support and Resistance Levels: Immediate resistance appears around 6074–6084. Key support is observed around 5996–5971, with a significant cluster near 5932. Momentum Indicators: The indicators in the lower panel are slightly overbought but show momentum is still intact for the upside. A pullback might occur if resistance is tested and holds. Short-Term Trading Opportunity: Look for a breakout above 6084 for a continuation of the uptrend. If the price fails at resistance, watch for a pullback to 5996–5971 for potential long entry points, aligning with the upward channel trendline. Broader Context: As noted in your linked analysis on Liquidity Trader, the broader market remains in a medium-term bullish structure. However, expect rotational movement and localized volatility as traders digest recent gains. Trading Plan for Today: Bullish Scenario: If resistance at 6074–6084 breaks, target 6100–6110. Place tight stops just below the breakout level to protect against false breaks. Bearish Scenario: A failure at 6074 or a break below 5996 could signal a deeper pullback to 5932. This level may offer a buying opportunity if broader bullish momentum remains intact. Neutral Stance: Avoid trading in the 6035–6074 range as this zone may consolidate without clear direction. This setup focuses on short-term opportunities, keeping the broader context in mind. I then gave it the labels on the indicators for additional detail. Quote Key Observations: Trend Channels: The price remains within a bullish green channel, showing consistent upward momentum. The red channels highlight retracement areas and potential resistance. The price is near the top of the current green channel, indicating potential resistance at higher levels. Moving Averages: 50-period MA: Acting as dynamic support, currently near the mid-range of the upward channel. 120-period MA: Positioned below the price action, confirming the medium-term bullish bias. Linear Regression Channel (LRC): Aligns with the green upward channel, reinforcing the ongoing uptrend. Indicators: MACD (32,33): Bullish crossover observed, indicating momentum favors the upside, but the histogram shows some divergence, warning of potential slowing. Momentum (Mom 33): Shows strength but appears to be leveling off, suggesting caution near resistance. True Strength Indicator (33,20): Strong positive signal, consistent with the bullish structure. Fisher Transform (66): Oscillating near overbought levels, hinting at possible resistance ahead. Support and Resistance Levels: Immediate Resistance: 6074–6084, close to the top of the green channel. Support Levels: 5996–5971: Initial support within the channel. 5932: Significant support at the lower channel boundary, reinforced by the 120-period MA. Broader Context: Per the analysis on Liquidity Trader, the medium-term outlook remains bullish. However, intraday fluctuations and resistance levels should be closely monitored, especially near the green channel boundaries. Updated Trading Plan: Bullish Scenario: Breakout above 6084: Target 6100–6110. Use tight stops just below the breakout level to avoid false breaks. Bearish Scenario: Rejection at 6084 or breakdown below 5996: Target a retracement to 5932 for potential buying opportunities. Look for confluence with 120-period MA support. Neutral Zone: The 6035–6074 range might be choppy; avoid trading in this zone unless clear breakout/rejection signals emerge. This updated version reflects the labeled indicators and their implications more accurately. Let me know if you'd like further adjustments! It's not 100% accurate in seeing what's on the chart, but it's damn close. I think that ES traders and others might find this useful.
Takachi-1 Posted January 22 Report Posted January 22 Yes, I could tell, but for a good reason! You tend to write as if the "whatever" is valuable and will sell your report. Alvin translates the whatever, into a direct visceral benefit to the reader, exactly why Alvin is good and valuable to you! Alvin's going to make you money!
DrStool Posted January 22 Author Report Posted January 22 AIvin helped my Algo find another big weiner this mawnin. I bought it at 9.78 around the open, and it's now 11.25. I took a big position. 50 share. 😂😂😂 Because, this is a test. This is only a test, of the emergency bawdcast system. If this had been a real trade, you would have heard, Sayonara, my friends. Life on the edge! I wouldn't have it any other way. 🤣🤣🤣
Takachi-1 Posted January 22 Report Posted January 22 If I didn't know you for 25 years, I'd think you were about to raise your rates!
DrStool Posted January 22 Author Report Posted January 22 I want to keep my prices down, to help the tired, the poor, the huddled masses, yearning to breathe free. Like me! 😂😂😂
DrStool Posted January 22 Author Report Posted January 22 I now am able to guess at a 5 day cycle projection. Looks like 6130.
DrStool Posted January 22 Author Report Posted January 22 That chart that was up 15% is starting to look like a fungoo finga pattern. Or is this just a return to the scene of the crime (standard pullback after breakout?) Gotta be quick reactor with this high volatility crap.
DrStool Posted January 22 Author Report Posted January 22 I looked away for a minute and it has filled the gap. In other words, it went from a 15% gain to a loss. Of course, I bought it for the long term. I'll just wait for it to come back. 🤣🤣🤣
Takachi-1 Posted January 22 Report Posted January 22 I don't short very often but I am about to take a deep dive on CRK (Comstock). At a 3 year high because of NG priced up for the Vortex. Shoulder season is not that far away and my target is $12.50.
DrStool Posted January 22 Author Report Posted January 22 2 days ago, the screens spit out PG on the buy side. I looked at it for a trade and put it in my watch list but said, nah, too stodgy. It never moves. Fucker gapped up 5 bucks today. What the AI allows does for me is write programs to run the screens that pick up ideal Hurst setups. Obviously, not all of them move or do the right thing, but it is screening every active stock and finding the setups that are most propitious. That's scary.
DrStool Posted January 22 Author Report Posted January 22 9 minutes ago, Takachi-1 said: I don't short very often but I am about to take a deep dive on CRK (Comstock). At a 3 year high because of NG priced up for the Vortex. Shoulder season is not that far away and my target is $12.50. CRK. Now there's a blast from the past. Back in my day, CRK was Campbell Red Lake, one of the hottest gold miners in the late 70s as gold was surging to the then record of $810. Here's a chart of CRK today for your listening and dining pleasure. I present widdout comment.
Recommended Posts