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[Dwer]

Market Force: Bullish on drops. Market is trying to form a bottom on one more washout to the downside. Still too many bulls trying to buy the dips suggesting more downside.

Trade Setup Summary for Tuesday, March 23, 2004:
1) Buy 1095.50/ Sell 1093.00 stop -2.50 (Buy B/D with tight stop on price move higher)

2) Sell 1094.00/ Cover 1096.50 area -2.50 (Reverse short as High Five goes from Bull to very bearish)

3)(2:03est) Sell 1097.50/ Cover Break even (3rd level up TB move/cover at even for re-short)

4) (2:42est area) Sell 1098.75/ Cover 1098.00 +.75 pts.

TOTAL: -4.25

Recap of Tuesday's Action:
Good Morning and welcome to Wednesday's Action.

On our Headline Call we were looking for the market to continue to exhibit bullish Market Force off early lows.

On a higher opening of about +5 handles and a slight move up from there the market got pounded to the downside with the High Five starting out bullish and then going very bearish.

Originally we wanted to look to buy drops and attempted this at the BreakDown (1095.50) with a bullish High Five. We saw a decent pop up to the 1098 area but then the market changed its tune, the High Five went bearish and they pulled back stopping out the trade for a small loss shown above.

We reversed our view expecting a return to test the lows of Monday and got short at 1094.00 which again saw a nice pullback to just 1089.50 before taking off to the upside again grinding into our 2 pt. stop on the short.

A rather frustrating day in the sense that there was not much clarity to the overall market movements.

Later in the session we had commmitted our selves to just following our Trailblazer TCF setups/chart formations as there has been so much confusion lately in the establishment of daily trends in relation to the High Five. We feel this is the safest bet and the least pressurized way to trade the current market environment.

Using Trailblazer sometimes a larger scale move of +8 pts. or more will be "missed" but it is made up in the incredible accuracy and tight stops of the Trailblazer TCF approach.

We shorted a 3rd level up TB move going into the last hour and exited the trade at Break even as prices refused to pull back solidly.

We re-entered short on a 4th level move up according to our rules and saw prices once again pull back but retrace to the entry 2 TIMES so we exited the position for a small profit of up to .50 pts..

Just 15 minutes before the NYSE closed the market came rapidly crashing down all the way back to the 1092 bottom of the Value Area zone. We had originally remarked on our New TCF Live Update service how the market force had changed and we were looking for lower prices. A rather surprising move that appeared more like some kind of rig without any substantial news backing the fast drop snuck up on traders right near the close of the day's session.

JOIN WITH ME TODAY ON OUR NEW LIVE TCF INTRADAY UPDATE SERVICE FOR MY COMMENTARY ON THE TRAILBLAZER SETUPS, CHART FORMATIONS, INDICATORS AND HIGH FIVE ANALYSIS. You cannot get any closer to the action then having me updating you live on our Auto Refresh Email service. With the way the markets are right now I have launched this service to keep us all on the right side of the market. CLICK ON THE STAR ON OUR HOME PAGE FOR MORE DETAILS.

Today's Call & Briefing:
Today is another mixed day with some more expected radical market movements. Usually it is rare to get a repeat of a particular market action so we will be expecting some surprises.

On our TCF Live Update service today I had commented on how I am getting very committed to ONLY using the Trailblazer approach in this market for entries, exits, stops and profit objectives. The main reason being is that TB measures the market so nicely that once the approach is learned you can keep stops very tight and take profits in a way where the market will show you when to do that under most circumstances.

In markets like we are in now which are erratic and trendless for INTRADAY traders these trading features of a system are very unique.

THE BEST WAY TO LEARN TRAILBLAZER IS TO JOIN ME ON OUR TCF LIVE INTRADAY UPDATE SERVICE WHICH IS BOTH AN EDUCATIONAL SERVICE AND A LIVE TRADING SERVICE.

Keep in mind that in using Trailblazer we will NOT be focusing on 8 point type moves as we did in 2003 before the markets changed dramatically. But with Trailblazer it is made up in smaller profits on a few more trades with tighter stops. Indeed in the long run I expect Trailblazer will OUTPERFORM any system on the market whether mechanical or discretionary.

On many occasions I should be able to see when we are going to get a larger scale move and if it is clearly visible we will try and hold out for those too.

For today: We are still looking for lower early drops to find support and rally but we are definitely looking for a further washout in prices to really get the Bears loaded on the sell side.

Will this occur today? I expect that it will and definitely hope so. If this is the case there is a good chance that we could get more of an upside trend coming in here pretty soon after that.

Witness Tuesday's erratic price whipsaw to note how dangerous it can be right now trying to hold out in the market with larger scale stops. On Tuesday both sides of the market got cleaned out and twice in some cases. These are very treacherous markets right now and great caution is urged in being involved.

Look to stay on the Buy side on ANY LOWER OPENINGS AND EARLY DROPS. If prices open flat to higher and push up higher first then we are going to be expecting further downside to get below that Monday low of 1087.50 and find support somewhere just below that area.

Value Area: 1,094.30 - 1,100.10
Trade holding below 1094.30 will confirm the downside action. Pushing into the VA from lower levels should try and retrace back to the 1100 handle but I expect it is just the "too early bulls" looking to buy the market in here.

We expect it will head lower first and get "everyone" bearish first.

Buy Pivot Target: 1,087.25 - 1,088.25
No Trade at this target directly but watch this area for Trailblazer formations to buy. These Buy/Sell Pivots are still very valuable in giving us price zones to work with and scout out our TB moves.

-4.25 stop/pivot comes in at 1083.00 which would be very close to our lower goal of 1078 to possibly find a bottoming zone which the long side could waken up from.

Sell Pivot Target: 1,097.75 - 1,096.75
No trade at this pivot today as the market is swinging on both sides.

Look for the lower, early prices to find resistance up here if they make a rally attempt.

10 Day "Pit Bull" Moving Average: 1,109.50
Still in the "Sell Rallies" mentality on any larger scale up moves. We are closing in on the Pit Bull somewhat and may see prices distance themselves again from this Pivot by moving lower as we expect for today.

Pro Trader's Action
We are in a highly mixed, double sided crazy market now that is hammering players on both sides. By our committment to using the Trailblazer signals now exclusively for entering and exiting trades we should be able to hone in on the best trades, take our scalp profits when available and keep chipping away in accumulating S&P500 points.

Try to stay on the sell side until we get more "washout" to the downside and then be ready to roll to the buy side and get some strong upside action. It's coming anytime so don't let the price slaughter to the downside get you too bearish.

Good luck with your trades today and I'll see you in the action. Mohan