When you see contraction it means we are consolidating gains or losses. There are periods of contraction, and expansion. We are in a contraction period. I am currently waiting to see if we are able to tag tag 8 EMA and then maybe we can see another move higher. Maybe we see it tomorrow BUT then again, we could just have another tight range tomorrow and we may need to wait for Monday to really wait for this pattern to set up. I like the patterns out there right as a whole. I love the fact that we gapped up, held it, and are pulling back via time. This as a whole is VERY bullish. We are still a little extended off the 8 EMA for my taste to be getting too excited but I think that should change in the next couple days. 

 

Stick with the best in breed names, and wait for the market to set up as well. There are some NICE charts out there, it is just all about finding them and being patient. I am off to the gym right now so I will catch ya” on Twitter, and if you would like to email me.. Please visit the contact page on this website. 

My charts from today – 

3-7-2013 FB 3-7-2013 SLB 3-7-2013 SPY

Contraction is GOOD – Daily Analysis –