PLdot and 5/9 together

[Trader Question]

The Daily PLDot "AND" 5/9 are at 894 (894.50 & 893.75 to be exact)and are inside the envelope

I was wondering the significance of the PLDot& 5/9 together "inside" envelope. generally as you are aware the 5/9 tends to be a "further out" phenomenon.

Being together makes for a very "strong" support and I quess "push" although P&L lines don't push

I'll get more into it when I do my analysis for Monday -but the 910 we closed at is the Quarterly PLDot so depending on where we open on Monday
it will obviously be an important influence if it pushes down then we could be in congestion between the 910 and this "combo" PLdot & 5/9 at 894.

Interesting anomally - just wonder what its signifcance is and should I be expecting anything different??

D.M.

[pldot]

A "short" 5/9 that is close to price and near at hand can be a very powerful indicator, to the upside if it holds and to the downside if it breaks... and so, be alert for a *possible* big move....

[Trader Question]

This is great but I'm in uncharted water this is the strongest mkt I've been in using P&L We are So far away from the PLDot's - I hesitate
to go Long - I just sit waiting for the MKT to hit resistance P&L numbes to go short this is incredible - I quess its all in the PLDot & 5/9 at 894
that you should expect such a rally

I'm shorting at 920 a bit below the Daily 5/1 921 and Weekly PLDot crest & 60 min 1-1 hi 923 and Quarterly PLdot

How would you have entered to take advantage of the rally this morning? - Go long above the Daily 1-1 hi 913.25, Monthly 6/1 912 and daily 5/2 911.75

We're just so far from all the PLDots it doesn't seem prudent to be going long up here

D.M.

[pldot]

This is a key lessons: don't go against the flow....
P&L support and resistance numbers can be compelling and so frequently effective that we can start to think we have the analysis completely knocked if we say that we can always sell projected resistance, etc. But ... resistance can break, and the flow will tell you when that is occurring.
Note that we have the weekly pldot and the monthly pldot joining forces, and so the potential push can be very strong, and hence resistance weak.
I went long at 912, which I considered a late entrance, and monitored carefully and nervously as we broke through resistance.
Your short at a point of geometric interest makes rational sense but did that market flow confirm your entrance? on which time-frame?
Sometimes you just have to buy into a moving market when the move is underway, and monitor closely to make sure you have not bought strong resistance.

[Trader Question]

This is really a heck of a learning experience This like stuff you get in senior year at high school

Well at least I now know what to expect when I see a "short" 5/9 & PLDot together

D.M.

[pldot]

re short 5/9, etc... yes, can happen, but don't award it the "gold star" and always assume it will have the same result. Place more emphasis on the collaboration of the weekly and monthly pldot, and also the main lesson here: monitor, monitor, monitor, and flow, flow, flow.