Saturday, March 2, 2013

Zeus' Strike And The Alignment Of The Stars







I had my fair share of profitable adventures with my linemen when
 dealing with 3rd or 2nd Liners. And I think it's about time I wrote
 and shared it to you guys.


Let's start it off with 

"The Zeus' Strike!"
The only lightning strike you'll be wanting to catch.



Now whenever my linemen, the moving averages, like the 20MA or the 50MA go below prices, 
I noticed that most of the time, a short term rally happens.

But when the 100MA dives under the prices,
It takes the rally into another whole new rampaging level!

ZHI Daily Chart


Now I don't know how you call it in your village, but I call it Zeus'
 Strike because of that Blue 100MA that kinda reminds me of Zeus'
 Lightning bolt strikes that sends things flying whenever it hits the ground.


"Smite that downtrend my brother and
bring my ipitsky position to life!" 



Just like this Fulgarite:




Posted by Ken Smith from Australia

A lighting strike in the sand has melted the sand along the fingers of electricity
and then wind has blown the sand away leaving incredible sculptures.

Taken From http://natgeotv.com.au/natgeosnap/3321-fulgarite.aspx


I heard these things are worth a lot of moolah!



Well . . .




"Damn Right Mortals"

So when you see that 100MA getting close to the prices,
you better be locked and loaded.

. . .


On to the next shall we?


"The Alignment Of The Stars" 

I'm sure this isn't the first time you've heard about this right?
I've heard and seen this a lot in movies. And they say that this
 phenomenon usually brings "Good Fortune"



When you see the 3 moving averages in this order : 
where 20MA > 50MA > 100MA,


EEI Daily Chart

That means the Alignment of the Stars have favored the Bulls.
And we can all sit tight and start counting our growing profits.

These lines and parameters are the Trend Follower's Favorite.




"The gods have given us an UPTREND!"

. . .



But I also remember some scenes where the alignment caused

"FREE-DOOM!"





"Look my king! The stars are foretelling of
some shiny Mayan asses getting whopped later!"


NI Daily Chart




"We're Screwed!"


You can Call this "The Reverse Alignment"
And yes, there's also A Reverse Zeus' Strike.


But when dealing with 3rd liners (and some jockeyed 2nd liners), 
it is sometimes important that you also watch its weekly chart. 
Not all 3rd liners can sustain big and long runs. 

So by doing this, you'll be able to get hints if a Zeus' Strike 
or The Alignment Of The Stars is a sign of more God Smitin',
 Mayan Ass Whopping, Price Action in the days to come!


ZS = Zeus' Strike
When 100MA Dives Under Prices

AOTS = Alignment Of The Stars
20 MA > 50 MA > 100 MA



(Click Images To Enlarge)






Rare Instance When ZS and AOTS 
happen in both Weekly and Daily Charts





NI's Weekly AOTS = Top!





Additional Notes

In the case of Blue Chips and fundamentally sound 2nd Liners,
ZS and AOTS in the Daily Chart is enough.



Click Here To Learn More About Moving Averages



Additional Charts
(2nd Half 2015)
Click Images to Enlarge.








Tuesday, February 26, 2013

The Stock Market Ecosystem



Sometimes stock movements are beyond candlesticks or technicals
 and more of the stock's "characteristics" given by 
the players that control the stock.


The Stock Market is one Big Ecosystem.



You never know what kind of devil spawn predator lurks within.


But don't you worry, there are a lot of  ways to survive and thrive in it.
Here are some eco-relationships you might already have or might consider having...



COMMENSALISM

Commensalism is a relationship in which one organism benefits
 from another organism that is not affected. This is a positive,
 neutral relationship. 





Just like the photo above, most of the market players choose to ride  with the "whales." 
This relationship immensely benefit the small fishes since whales don't usually get "attacked."

Whale Buys Up a Stock = Small Fish Happy
Small Fish Buys Up a Stock = Whale doesn't feel a thing

Blue Chip Ecosystems are perfect examples of this.
More protection from market volatility.




MUTUALISM

"You Scratch My Back, And I scratch Yours."

Mutualism is the way two organisms of different species 
exist in a relationship in which each individual benefits. 





Well ain't that Cute...

Happens mostly in 2nd Liner Ecosystems 
with good fundamentals like TA, CPG, RFM and PIP.

Big players. Market Movers. Jockeys.

One Of these Bad Asses Buys Up = Everybody Happy

They usually form alliances and make Joint Ventures (JV) 
to push their common stocks for their mutual benefit.


Some players however, turn out to be "freeloaders"

Which in turn leads to...


PARASITISM

Parasitism is a non-mutual relationship between organisms of different species where one organism, the parasite, benefits at the expense of the other, the host. 




This could be fatal in cases where the host becomes filled with
hoards of parasites - especially when the BIG ones get on board!

Parasite Hoard Attaches itself to Host
Host Works Its Ass Off
Parasite Hoard Sells
Host Feels Sick
Parasites Happy







And Now to my favorite part...



PREDATION

In ecology, predation describes a biological interaction where a predator feeds on its prey. Predators may or may not kill their prey prior to feeding on them, but the act of predation often results in the death of its prey and the eventual absorption of the prey's tissue through consumption.






Oh what Lovely Shots Don't you think?



Very Common with 3rd Liner Ecosystems.

Predator Buys Shares, Prey Buys Higher
Predator Sells, Prey Gets Trapped.
Predator Happy.

Need I say more?

It's EAT or BE EATEN policy.




Happy ECO-SISTING Everyone.