Thursday, March 15, 2007


Today's entry will be relatively short.

Not a heck of a lot going on in the market today, although as my "FickleMan!" post suggested, I decided there was a good entry point today when the Dow was up about 50 points. At this point, we are in the upper half of the trading range that has been recently established. The breakout points of this range for the S&P couldn't be more plain:

A similar situation with the $MID, but from a different viewpoint. Look at the Fibonacci levels. The prices are bound between two levels right now, and we're once again in the upper half. Tomorrow morning's economic numbers will almost surely give us a catalyst for breaking out of this range.

The most exciting suggestion from this blog in today's action was the Chicago Mercantile Exchange Group (symbol CME), which I was touting when it was around $570. It got absolutely clobbered today, and I not only held on to all the puts, I even added a little to the position. I think great things could come from this trade.

Although my book has been out just a couple of weeks, there are a bunch of nice reviews already you might want to check out in case you were considering getting it. A lot of kind folks have written me about the book, which I appreciate it. It's pretty obvious I have a great interest in yakking about charts!


Leisa said...

I have re-posted my review. I'm not sure why it is not there. Thank goodness I posted it here and only needed to cut and paste (and fix my typo).

I still do not understand why the market is positive today.

Tim Knight said...

Thanks, Leisa; I was going to ask about this but didn't want to appear to be nagging; I still don't see the review, which is weird. I appreciate it, though.

Louis said...

I am a little disappointed at your book, honestly.
1/3rd. of the book, in the beginning, is how great, and how to, user manual of "P" site. Since it is a paid membership, and I am not using it, give $12 back to me please.

Tim Knight said...

I am sorry you are disappointing in the book. An important part of the book - - one might even argue its main purpose - - is to be a really solid manual to the ProphetCharts product. There are PLENTY of books just about technical analysis. This was meant to be both about tech as well as about the specific application.

Debbie Davis said...

Hi Tim,
I heard you speak in Orlando and have been frequenting this blog since. The information and the humor are priceless. I don't think you can read it without chuckling. Just received your book today and will write a review once I've finished it.

z-stock said...

If we have a down 3rd Friday, It’ll be the first one I’ve seen, in (well, in a second, as far back as….wait, I think I found it, … no wait, that’s not it, well.. Records don’t go back far enough.

RLgtGLgt said...

Book is great. Screw the fool that does not understand the P site. I always wondered how to maximize that site. Personally, your sentiment (and a couple longs / shorts on calls / puts) have made me about a 40% gain in the last 6 days. I don't buy everything, but put them in my watch list.

Hope this makes the post. Google screwed my blog login!

Love my last CME trades (basically no more than two days, but caught some great action - like a kid in a "strip club"!)

Smile you kooks!

Louis said...

One should be screwed because he does not understand? possibly mobbed & lynched?


This is going to be a nasty market, yet fair, punishing both ends...

Leisa said...

To be fair, in purchasing the book, I did not realize that it was devoted as much as it was to In fact, there was a moment there where I thought I made a mistake, BUT the redemption was complete based on the balance of the material.

Tim, did you take away my cow poem? I thought it so appropriate!

Tim Knight said...

Truth to tell, ProphetCharts isn't even *on* yet! It's coming next month. ProphetCharts is currently just on the Investor Toolbox.

No, Leisa, I didnt' zap your cow poem - - never saw it. In fact, another gent wrote saying his comments are disappearing. I wonder if Blogger is screwing up. I very rarely delete postings - - only when they are blatantly racially offensive.

Leisa said...

Well here it is--I thought it would be perfect (though it has religious overtones in the close, just imagined the enamored bulls--or think of the bison hearing the blow and running....if only to fall of the cliff. It's worth noting that the book from which I extracted this poem won the National Book Award. Hey...I've got culture, now you do too!

Transcribed Conversation in Praise of Cows

While it is so that you
can eat a pig from nose
to asshole and beyond,
the cow is usefuller:
the beef, beefsteak, broth,
are healthy, and the milk,
the fine glue from the hooves,
the leather and the horns,
Oh you can take one horn
and blow it and call up
whole armies of believers!

Poems Seven. Alan Dugan. Seven Stories Press. New York. 2001.

Mike said...


I've been a long time reader, former subscriber and occassional commenter. I just received the book today and I must chime in with the above guys. I'm hoping I will find value in the rest of the book but I too am a little disappointed that so much of the book is a user manual for a product that I would need to subscribe to. I even just reread the Amazon decription to see if I missed the fact that this is heavily a "how to use Prophetcharts" book but the description says you will "be introduced" to the product not that it will be a key feature or component of the book.

I'm hopeful I'll enjoy the technical content as I have no plans to change charting platforms but I do think the description should be different as I believe it is somewhat misleading.

Tim Knight said...

The criticisms about the book having a ProphetCharts-oriented are understandable.

In my defense, I really tried to "package" this with the publisher as a how-to guide to this particularly product. But they wanted to address a broader market.

I honestly did not/do not want to mislead anyone. If anyone's really ticked off and can't return the book, I'll buy it back from you!

Rob said...

indecision 07

Sharon said...

Tim- started reading your blog in october so I have seen your bad days!

Question- ASD- I have read the last management conference report and analysis and frankly cannot understand what is sustaining this stock price. They are exposed to 3 businesses which I think are in the toilet YET the stock is near the 52 week high.

Not only that, they are trying to sell some of these businesses (ok 1 is a spin off). ALos, this past week the CEO sold 100,000 shares.

To me the chart screams that it should fill the GAP.

ANy thoughts?

Thanks and by the way- love your AZO- boy are you in the zone!