Larry,
Can you remind me how to get charts into these posts from Stockcharts.
Thanks,
Howard

Here are the steps...

1. Annotate your chart

2. Upload it and save it as a “static snapshot.”

3. Go to your list of snapshot charts and to the right of the chart one of your choices will be “Message Board Link.”

4. Copy and paste the link into this forum.

Larry

Thanks Larry,
I couldn't see to the right of the charts.
I wanted to post this chart:



I find it incredible that a trend line drawn between the highs so long ago could have predicted what we saw in the past few weeks.
Howard

Howard,

It looks like you've clearly identified resistance on the monthly chart. That should help you for risk management purposes or to establish new positions.

Remember the 50% Principle? It was the basis that I bought the Diamonds as a hedge against short COT positions once the Dow rose above 9504. It helped a lot in reducing the drawdown of my portfolio while that particular COT signal was going against me.

Look how it applies to the S&P right now...



1160.85 is the 50% point. The intraday high for the S&P so far as been 1163.20. The closing high is 1157.80. The current COT short signal entry price for the first two strategies is 1157.54. I think for those who use stops, a close above 1160.85 is an great place to put a stop. You just have to be ready to re-enter if it closes below 1160.85 again and the COT is still short.

Larry

Larry,
Looking at this,



I think I see that the SPX has resistance at the 50% level. However you said the exact 50% point is 1160.85 and it has been higher. How close do you get in figuring this out according to Dow Theory. For instance the difference between the March high of 1163.23 and the 50 % level of 1160.85 is 0.2%. Would that really matter?
thanks,
h

Howard,

No, it doesn't matter. For example, when the Dow rose above 9504, according to the 50% Principle, it suggested a continuing upward move. But it crossed back and forth a couple of times before it finally took off to the upside.

So the 50% Principle dictates that it has to cross 50%and stay for it to be valid. What happened with the S&P (at leased so far) is that it crossed 1160.85, but it didn't stay there. In fact, it turned back down significantly.

Larry

Howard,

One more thing. This is my fault, but I left out one step in my instructions on how to upload charts. You should reduce the size of it to no larger than "huge." On some screens (like my laptop) those super sized charts create a bar at the bottom of the screen that you have to move back and forth in order to see the whole chart.

Larry