July 29, 2008
Beating Mother Merrill into Submission
I got several emails asking me to explain what I meant by shorting Merrill (MER) on smaller time frames every time the trend flips up and then back down, so I quickly made up this little animation. Ignore the time scale on the x-axis (it’s screwed up because I’m on China time). Let me know if this clears things up, or as usual, further muddies the waters.
Cat: | Time: 10:44 pm (utc+8)
July 30th, 2008 at 7:10 am
Capitulation today? Gap down, close up big on 5x volume?
July 30th, 2008 at 9:18 am
Lasw: It was a 90% up day (I think) but we’ve seen plenty of those in this bear market. :)
July 31st, 2008 at 8:36 am
Too bad it’s on everyones hard to borrow list thanks to the SEC. I guess you can try the options market
July 31st, 2008 at 5:43 pm
Always love your charts, the Chairman
Mind sharing what’s the condition of marking the candles red and green? Is it some kind of plugin/formula to the charting program?
July 31st, 2008 at 6:11 pm
Houston: Red are down candles (lower high, lower low to previous bar) and green are up candles (higher high, higher low to previous bar). It’s a formula in Metastock. Black are outside bars and blue are inside bars (incidentally).
August 3rd, 2008 at 12:17 am
The first 6 charts of your Merrill animation shows red and green candles that are done differently than the last 2 charts which I believe are colored as you say in your response. What is the condition of marking the red and green candles in the first 6 charts. Thanks, love your blog, Chairman.
August 3rd, 2008 at 1:13 am
Jeff: That’s Fuzzy coloring those candles in the first six charts… he’s a proprietary trend-following system.