8/6/2019 ETF Technical Analysis and Forex Technical Analysis Chart Book for August 03 2011

1/4

Our focus over the last two weeks has been the persistent weakness of economic numbers and the markets conclusion thata rebound in the second half may not be coming. This newsletter has been calling for a near term bounce and today lookslike the start. Stocks are ready to bounce not because of great optimism but rather because the short term pessimism isexcessive. Lower inflation numbers, reasonably good corporate earnings, and a loose monetary policy provides a positivebackground for stocks and when the market tires of focusing on sovereign debt issues it wants to rally. Although the hori-zontal support in the chart has been overrun it is not unusual for the market to exaggerate a move when politics interfere.The analysis is for educational purposes only and not a solicitation to buy or sell any security at any time. The commentsare made in the context of ETF position trading and Forex position trading. Visit my technical analysis blog for more in-formation at http://www.sealionllc.com I continue to post more charts and commentary on www.sealionllc.com

Too much pessimism has it run its course?

Chart #1 SPY, SPDR S&P 500

Please support us by choosing services from our partners. The offers are free and help support thischart book, our video analysis on YouTube, and other great services. Your support is greatly appreci-ated. Visit our website www.sealionllc.com for more ETF technical analysis, Forex technical analysisand thoughts on ETF position trading and Forex position trading. We maintain a technical analysisblog and demonstrate ETF expertise and Forex expertise. You can get more information on our part-ners there as well.

This chart book is for educational purposes only and not a solicitation to buy or sell any security.

08/03/2011Volume 1, Issue 17

Sea Lion Capital Management LLCChart Book

Chart NotesPossible lower high with shooting starcandle

Prices are now above the median line ofthe bullish channel and have found short-term resistance.

Prices rally through resistance and out ofthe channel. A consolidation will berequired before the next move up.

No consolidation yet as prices are risingalong channel resistance.

Prices retreat to prior resistance nowsupport for consolidation

Prices testing lower channel support andneed to reverse quickly to maintain therally

Prices could be back testing setting up amove lower but more likely the channelneeds to be redrawn or this is a tempo-rary noisy overshoot.

Prices have no violated the channelsupport and are trying a back test. Theback looks weak in nature.

Prices have broken through the channeland head lower gyrating around theirmedian line.

Prices have exceeded their channel butconsolidated and stopped under priorchannel support. This bull trap willreverse shortly.

Prices under old support line from p riorchannel and at resistance of redrawnchannel.

With resistance tested and in place priceshave moved lower and begin their moveto the bottom of the channel.

Prices move aggressively half way acrossthe channel and are driving towardchannel bottom.

Prices reached channel bottom and havebounced. The hammer bottom shouldhold and prices should rise f rom here.

Prices are gyrating sideways and forming abase from which they can bounce. Thebounce may be short lived.

Prices overshot channel and horizontalsupport but another hammer shouldstart the rally back across the channel.

http://www.sealionllc.com/http://www.sealionllc.com/http://www.sealionllc.com/

8/6/2019 ETF Technical Analysis and Forex Technical Analysis Chart Book for August 03 2011

2/4

Page 2 Sea Lion Capital Management LLC

Prices have bounced with a hammer bottom and moved higher. This will serve as the near termlow and prices should recapture positive momentum. The political concerns have distorted the mar-ket in the short term mving prices beyond chart support. With attention on the sovereign debt issuediminishing attention will return to micro issues such as earnings performance and an accommoda-tive federal reserve.

Chart Notes:Possible change in trend needsconfirmation with a new high.

Prices are now in the upper half of thebullish channel and have more room torun.

Prices have continued up and noextend beyond the channel. Priceswill need to consolidate before thenext leg higher.

Prices rising along resistance.

A return to former resistance nowturned support. A mild consolidationhas begun.

Testing the median line. Price oftenfinds support here.

Prices found support at the medianline and are poised to move higher.

Prices are holding their channelsupport and a bounce may occur.

Prices have broken channel supportand are falling around the medianline.

Price have stopped at channelresistance but need to reverse tomaintain the downtrend channel.

Prices at the apex of old support nowresistance and the current channelresistance. Prices will reverse soon.

Prices failed to hold their afternoonrally and are now moving lower.

Prices gapped lower and may nowchallenge the lower portion of thechannel.

Having found the bottom of thechannel and bounced with ahammer prices should rise from herein the near term.

Prices are bouncing around supportand forming the base necessary tomove higher.

Prices put in another hammer ad tiisone should stick and prices shouldmove higher from here

Chart #2 IWM, iShares Russell 2000

http://www.jdoqocy.com/b766iqzwqyDHLHFENKDFEKLKFGI%22%20target=%22_blank%22http://www.jdoqocy.com/am77kjspjr6AEA87GD687D79GA7

8/6/2019 ETF Technical Analysis and Forex Technical Analysis Chart Book for August 03 2011

3/4

Page 3Volume 1, Issue 17

Prices are lower and now sit at the median line. A short term bounce is possible but prices will golower. Pessimism over the Euro zone will continue to weigh on the pair.

Chart# 3 EUR/USD, Eurodollar Chart Notes:Markets bullish trend broken withviolation of prior swing low.

Markets bounces and reverses butputs in a lower high.

Market retests $1.40 low and if itholds a sideways channel is inplace.

Prices reverse on support in anevening star reversal in a showof strength and the marketswiliness to be open to risk.

Prices have failed to advance thereversal and are now below thereversal high. A retest of lowerchannel support looks likely.

Prices made a dead -cat bounceand will head lower to rangesupport.

Prices have edged higher but arestill below the median line and arepoised to reverse.

Prices rallied just short of theprior high and have begun topossibly reverse. A reversal wouldcorrelate with a downturn inequities.

The Euro strengthens against aweak dollar and mild concern overthe US debt ceiling crisis. Priceswill reverse shortly.

Prices reversed hard today and anew downtrend has begun.

Prices paused in their move downbut this is temporary as the nextmoves are lower.

Prices finished lower but have notclosed lower than the lows of lastweek. A break of the median linewill accelerate the selloff.

Watch for a short term bounce atthe median line before pricescontinue lower.

http://www.dpbolvw.net/he102gv30v2IMQMKJSPIKJRLKKPJ%22%20target=%22_blank%22http://www.ino.com/info/36/CD4100/&dp=0&l=0&campaignid=9

8/6/2019 ETF Technical Analysis and Forex Technical Analysis Chart Book for August 03 2011

4/4

Why Sea Lion Capital Management?

Everyone needs help investing money. Whether for retirement or addi-tional income everyone wants to benefit from our free market capitalistsystem to increase their wealth. The problem is most individual investorslose money. In every trade there is a winner and a loser and the globalmarketplace moves so fast and is so complex the "Average Joe" investorhas no chance. Most individual investors end up losing money in misplacedstocks and mutual funds. The psychological pain of watching hard earnedmoney be lost makes most individual investors "buy high and sell low".More than half of all managed mutual funds cannot even keep up with themarket indexes. If you have invested in the past and are frustrated withthe lack of quality returns we can help.

The Difference

Sea Lion Capital is a unique approach to wealth management. While mostinvestment advisors require their clients to have hundreds of thousands of

dollars we can work with you with as little as $10,000. Most investmentadvisors require you to use an expensive broker whereas Sea Lion Capitalis partners with one whose commission fees are some of the lowest in theindustry. We know everyone is concerned about wealth management butfew know what to do about it. The internet has revolutionized home mort-gages, tax services, insurance, and other financial services - the time hascome for Investment Advisory services as well.

633 Normandy VlgNanuet, NY 10954

Phone: 877-242-8880Fax: 877-242-8880

E-mail: support@sealionllc.com

Sea Lion Capital

Management LLC

Coming Soon.

Video Introduction to Sea Lion Capital Management LLC

Uncommon Wisdom for All

VI S I T O UR WEB SI T E AN D O UR BLOG

W W W. SEALI ONLLC. COM