Comments on: Commodities Analysis & Trade Ideas 7-5-22

By: jmccallum

jmccallum — Tue, 05 Jul 2022 20:35:27 +0000

In reply to rsotc.

hi Randy,
thanks very much for your comment.
John

By: rsotc

rsotc — Tue, 05 Jul 2022 20:14:59 +0000

In reply to jmccallum. Maybe but to what point? The rallies were already down to just 1 day so much much shorter can they last, a few hours, minutes? I have noticed that the rallies off the divergent lows on the 60-minute time frame since the one that started in mid-March had been of diminishing magnitudes but when I look at the more significant daily charts of the major stock indexes, I see comparable bullish divergences on the daily chart to those sparked the March rallies. Zooming out even further, the indexes just hit oversold (30 RSI) readings on the weekly charts & they were well above oversold back when the March rallies occurred. One could certainly make a decent bull or bear case right now, I'm just going with the former based on my read of the charts at this time but willing & ready to change teams if the charts tell me to.

By: jmccallum

jmccallum — Tue, 05 Jul 2022 20:00:28 +0000

the nasdaq futures topped on 1/4/22
they fell for 2 months creating a bullish wedge
it broke out of the wedge on 3/16 and rallied 10% in 13 days
they fell for 2 months creating a bullish wedge
it broke out of the wedge on 5/27 and rallied 5% in 6 days
they fell for 2 weeks creating a bullish wedge
it broke out of the wedge on 6/23 and rallied 4% in 4 days
they fell for a week creating a bullish wedge
it broke out of the wedge on 7/4 and rallied 1.5% in 1 day
they fell for a day creating a bullish wedge
it broke out of the wedge on 7/5 and rallied 1.5 % in 1 day

are they not getting smaller a quicker as we go?

will it continue?