Mohan 26/02/04
Enviado: 26/2/2004 11:51Market Force for Today: Bullish. Look to buy drops and also breakouts. Market expected to rally some today.
Trade Setup Summary for Wednesday, February 25, 2004:
1) 10:11 est Sell 1143.25/ Cover 1138.00 +5.00 (TB 3rd level up...held through fast drop lower into BreakDown)
2) 11:41est Buy 1138.50/ Sell 1140.50 +2.00 (TB BreakDown and washout buy on "Too Far Away" spikes from 9/18 SMA)
3) 12:38est Sell 1142.00/ Cover for Breakeven (TB 3rd level up...couldn't push em lower, cover for scratch)
*Market tape (High Five) bullish but not thrilled to buy...stop for the day)
TOTAL: Up to +7.00
Recap of Wednesday's Action:
Thank You for joining us today.
It was the Fed spokesmen's parade today as Greenspan and then later Poole both threw in their 2 cents (or 2 million) about the economy and relation to fed activity.
Market hit the BreakOut oddly with a rather seemingly bullish looking appearance but a murky undertone to the High Five.
Prices collapsed off of 1143.00 big resistance area we have been discussing now for some time and got slammed down to 1137.50 area.
The spikes got "Too Far Away" from the 9/18 period average and that was a signal to get out of the short and get long after they stalled at the lows around 11:40est.
Up they went following our script for another lower washout to get the bears entrenched (which is exactly what occured) and then up they went to tighten the noose a bit on those bearish stops.
Today we should see all those Bear Stops get cleaned out hard with a nice rally up to test at least 1151.00 again and maybe NEW HIGHS.
Trying to short that last TB 3rd level up around 1142.00 went nowhere and if you were patient, got out and re-shorted the next level up there was a bit of high pressure, nervous money to be made but I called it a day.
The High Five was bullish and the ticks were not showing any negative symptoms. The main thing was our Headline Call and the amount of Bullish Market Force that I know is underlying the market right now.
Today's action solidified that formula and they should take off upside today.
More below.
Today's Call & Briefing:
I am not screaming Mega Bullish or anything here. Just looking for prices to rally up and cleanse out all these excessive bearish positions.
This whole episode could turn into a more decent, larger scale rally so we shall keep our eyes peeled for that.
For right now I am expecting a trip up to 1151.00 area to hit some resistance and then if we can blow through that to the upside then we will go and try out 1155 while stretching out to hit the highs at 1157-58 area.
How to trade this action?
Look to get long on any lower early moves down to the Buy Pivot target and also watch for the failure of the Sell Pivot target at 1146.00 to hold back the selling. Then it's just a matter of taking out 1150.25 and we should move up higher.
Watch for a BreakOut buy to occur in this area around 1146-48. If we get the setup for the BreakOut buy with all the necessary ingredients then we can take that chance and buy em for a 6 point ride higher.
There should be enough Market Force to give us that kind of move.
If they GAP UP and hit 1150 area on a balloon opening then we have to consider that the upside has already been half way accomplished and we should set our breakout sites a little shorter.
Just take a look at the tape (High Five) and using our parameters for reading the High Five you will see what to do.
Just be on the lookout for a weakening TRIN on any rally accompanying a NAZ that rallies but then backs way off the highs of the rally. Caution then.
Value Area: 1,140.70 - 1,143.60
Trade above VA which we have essentially on the close is a bullish sign. Using all the above mentioned numbers we can see how Value will pan out after a rally (if indeed we get one).
Buy Pivot Target: 1,139.00 - 1,140.00
Look to buy this pivot BUT LOWER on an early move off the open. -4.25 is 1134.75 but not expected to go that deep.
This could be a challenge to buy here but if we get the right chart setup then we can nail the long side. Don't let em trade below 1134.50 on your stop though. Prices should jump right off this area or something may be wrong.
Sell Pivot Target: 1,146.00 - 1,145.00
As mentioned above we need to see if this area is going to coincide with the BreakOut Hour One pivot and if we are getting a signal to buy.
If so then look for the 1150.25 stop/pivot to get taken out pretty easily on a rally and then they should go higher. Good luck.
10 Day "Pit Bull" Moving Average: 1,147.20
Just above the Sell Pivot target is the Pit Bull today and we are going to hit some resistance there most likely.
Once prices pop through this area then they should grind up nicely. This type of trade setup described here would definitely confirm that the current Sell Mode is in ABERRATION and that we are going higher.
Pro Trader's Action
Don't mean to sound too bullish today but I am simply reading to you what my 18 proprietary indicators are telling me. That's all I ever do really.
As professional S&P500 traders we are open to unlimited possibilities about what can happen in the markets. We have to be willing to totally live in the NOW and see the TRUTH. We cannnot be blinded by the past either in terms of our past losses and pain from trading, our past correct or incorrect assumptions or our past victories in trading.
We simply go to work everyday and try to (what I call) "Pick up $200 Bills (or 300$, 500$, 1000$ or whatever your size is) off the floor"
If you get damn good at what we teach you here and you can consistently pick up the coin and not allow yourself to get hammered due to negligence, then you are on your way to creating a fabulous living and career.
Let's look to focus on the bullish side today UNLESS they get all the bullishness done right on or shortly after the opening with a huge gap up balloon rally or something. Then we would have to reconfigure a bit.
Good luck in your trading, take no guff on your positions, and stay in the reality of the moment with the current market readings.
All the best, Mohan
Trade Setup Summary for Wednesday, February 25, 2004:
1) 10:11 est Sell 1143.25/ Cover 1138.00 +5.00 (TB 3rd level up...held through fast drop lower into BreakDown)
2) 11:41est Buy 1138.50/ Sell 1140.50 +2.00 (TB BreakDown and washout buy on "Too Far Away" spikes from 9/18 SMA)
3) 12:38est Sell 1142.00/ Cover for Breakeven (TB 3rd level up...couldn't push em lower, cover for scratch)
*Market tape (High Five) bullish but not thrilled to buy...stop for the day)
TOTAL: Up to +7.00
Recap of Wednesday's Action:
Thank You for joining us today.
It was the Fed spokesmen's parade today as Greenspan and then later Poole both threw in their 2 cents (or 2 million) about the economy and relation to fed activity.
Market hit the BreakOut oddly with a rather seemingly bullish looking appearance but a murky undertone to the High Five.
Prices collapsed off of 1143.00 big resistance area we have been discussing now for some time and got slammed down to 1137.50 area.
The spikes got "Too Far Away" from the 9/18 period average and that was a signal to get out of the short and get long after they stalled at the lows around 11:40est.
Up they went following our script for another lower washout to get the bears entrenched (which is exactly what occured) and then up they went to tighten the noose a bit on those bearish stops.
Today we should see all those Bear Stops get cleaned out hard with a nice rally up to test at least 1151.00 again and maybe NEW HIGHS.
Trying to short that last TB 3rd level up around 1142.00 went nowhere and if you were patient, got out and re-shorted the next level up there was a bit of high pressure, nervous money to be made but I called it a day.
The High Five was bullish and the ticks were not showing any negative symptoms. The main thing was our Headline Call and the amount of Bullish Market Force that I know is underlying the market right now.
Today's action solidified that formula and they should take off upside today.
More below.
Today's Call & Briefing:
I am not screaming Mega Bullish or anything here. Just looking for prices to rally up and cleanse out all these excessive bearish positions.
This whole episode could turn into a more decent, larger scale rally so we shall keep our eyes peeled for that.
For right now I am expecting a trip up to 1151.00 area to hit some resistance and then if we can blow through that to the upside then we will go and try out 1155 while stretching out to hit the highs at 1157-58 area.
How to trade this action?
Look to get long on any lower early moves down to the Buy Pivot target and also watch for the failure of the Sell Pivot target at 1146.00 to hold back the selling. Then it's just a matter of taking out 1150.25 and we should move up higher.
Watch for a BreakOut buy to occur in this area around 1146-48. If we get the setup for the BreakOut buy with all the necessary ingredients then we can take that chance and buy em for a 6 point ride higher.
There should be enough Market Force to give us that kind of move.
If they GAP UP and hit 1150 area on a balloon opening then we have to consider that the upside has already been half way accomplished and we should set our breakout sites a little shorter.
Just take a look at the tape (High Five) and using our parameters for reading the High Five you will see what to do.
Just be on the lookout for a weakening TRIN on any rally accompanying a NAZ that rallies but then backs way off the highs of the rally. Caution then.
Value Area: 1,140.70 - 1,143.60
Trade above VA which we have essentially on the close is a bullish sign. Using all the above mentioned numbers we can see how Value will pan out after a rally (if indeed we get one).
Buy Pivot Target: 1,139.00 - 1,140.00
Look to buy this pivot BUT LOWER on an early move off the open. -4.25 is 1134.75 but not expected to go that deep.
This could be a challenge to buy here but if we get the right chart setup then we can nail the long side. Don't let em trade below 1134.50 on your stop though. Prices should jump right off this area or something may be wrong.
Sell Pivot Target: 1,146.00 - 1,145.00
As mentioned above we need to see if this area is going to coincide with the BreakOut Hour One pivot and if we are getting a signal to buy.
If so then look for the 1150.25 stop/pivot to get taken out pretty easily on a rally and then they should go higher. Good luck.
10 Day "Pit Bull" Moving Average: 1,147.20
Just above the Sell Pivot target is the Pit Bull today and we are going to hit some resistance there most likely.
Once prices pop through this area then they should grind up nicely. This type of trade setup described here would definitely confirm that the current Sell Mode is in ABERRATION and that we are going higher.
Pro Trader's Action
Don't mean to sound too bullish today but I am simply reading to you what my 18 proprietary indicators are telling me. That's all I ever do really.
As professional S&P500 traders we are open to unlimited possibilities about what can happen in the markets. We have to be willing to totally live in the NOW and see the TRUTH. We cannnot be blinded by the past either in terms of our past losses and pain from trading, our past correct or incorrect assumptions or our past victories in trading.
We simply go to work everyday and try to (what I call) "Pick up $200 Bills (or 300$, 500$, 1000$ or whatever your size is) off the floor"
If you get damn good at what we teach you here and you can consistently pick up the coin and not allow yourself to get hammered due to negligence, then you are on your way to creating a fabulous living and career.
Let's look to focus on the bullish side today UNLESS they get all the bullishness done right on or shortly after the opening with a huge gap up balloon rally or something. Then we would have to reconfigure a bit.
Good luck in your trading, take no guff on your positions, and stay in the reality of the moment with the current market readings.
All the best, Mohan