"TAP não sobrevive se se mantiver pública", garante Pinto Luz

[Dwer]

Market Force: Continued Bullish. Look to buy early drops today for higher prices to continue. CAUTION: A higher open and early rally to be met with Selliing.


Trade Setup Summary for Monday, March 29, 2004:
S@1120-21.00/ Cover 1121.75 area for up to -1.75 loss

Recap of Monday's Action:
Good Morning and welcome to Tuesday's trading action.

On Monday our Headline Call was for a bullish market today and to look to get on the long side if we got a lower opening and early drop.

Well, we got a strong gap up +6 opening and a fast rally higher from there up to the 1120-21 area.

After smoking up the prices to our first goal area mentioned on Monday's briefing of 1121.00 prices pretty much stalled all day, tried to push higher, but kept selling off.

On our LIVE Intraday service we had suggested shorting the 1120-21 area and we basically waited all day fishing but no bites. The market had made one liquidation of the longs down to the 1119.50 area and we had called for (and patiently waited for) the 2nd level liquidation which I had been suggesting would tap into the 1116.00 handle.

We got the second liquidation with the lows coming in at 1117.25 on the Emini S&P500. Some of you had gotten out yet we continued to look for one more lower move. My gut feeling when they were on the 2nd liquidation was that it was the end of the lower action and I had immeditately dictated that to the Intraday subscribers but by then we had seen prices move back to the 1121.00 area on a bounce.

By then it was late in the day so we closed out the position for a small loss as shown above between small profit, to breakeven to up to -1.75 loss depending on individual entry and exit.

I was a bit surprised that we did not get a deeper sell off Monday afternoon and this gives us more clues on the strength of the New Buy Mode I had said had begun mid last week.

Here is where we are for today.

Today's Call & Briefing:
We are looking for continued higher action today ESPECIALLY on a lower opening and early push lower. Our target first goal up is still 1137.00 and we expect we can achieve that pretty soon.

In the Headline Call one word of CAUTION goes out on a higher opening and a run up EARLY similar to what occured on Monday. That would definitely be expected to fade out rapidly this morning.

Most likely we will get a flat to lower opening and an early move down.

We will be waiting for the Hour One pivots to set up today as we are inclined to watch for the Buy Pivot target area and the Hour One BreakDown pivot area for Trailblazer chart formations to get long.

TODAY IS A SCALPING DAY. Although we expect prices to move up higher on a lower opening and early drop our indicators suggest that we will be getting a choppy, trading type of day with a bullish bias.

So look for the lower action to get long today with the idea of mostly staying on the buy side of the Trailblazer moves unless we get some early fast rallies going. These should fade out pretty quickly if they occur right after the opening price.

Value Area: 1,119.00 - 1,122.40
This tight VA range today should give us some clues of the market action based on the reaction to the drops or rallies falling into this zone.

Ideally we will get lower prices that will be drawn back up into this VA zone and we will be long before that occurs.

Otherwise higher early prices that pullback into this zone will most likely find support at the 1119 level which also served as support on Monday.

Buy Pivot Target: 1,115.00 - 1,116.00
Watch for TB chart formations around this zone for buying. We are expecting continued higher prices off of any early drops and just above this area was strong support on Monday. Should hold today too as we move towards the bigger goal of 1137.00

Sell Pivot Target: 1,126.00 - 1,125.00
On a higher opening and early push up there will be resistance up at this price area EARLY. Later in the session if they climb up here from a flat to slightly lower opening then we would look for the resistance to come in near the +4.25 stop/pivot at 1130.25.

Should this occur then the pullback would be rather shallow and we would watch the TB formations for clues of lower move exhaustions. From these lower moves we would expect a climb towards 1137.00 to finish off the first level of the upper pattern.

10 Day "Pit Bull" Moving Average: 1,107.30
Crossing over the Pit Bull on Friday launched the larger scale up move we are seeing the beginning of.

The market is giving hints of the move being a little bit "Too Much Too Soon" so be careful of any rallies that get carried away today.

On any dramatic price liquidations (lower price moves) then KEEP BUYING as the Market Force is bullish and above the Pit Bull is Bullish on drops.

Pro Trader's Action
Today is expected to be a Trading/scalping day. On an early move lower if we get that we would expect there to be some type of trend to the upside resistance but we won't know about this until we get in the live action.

I've explained most of what is vital above so all we have to do is watch to see how the opening pans out and wait for the first hour so we can get some good clues on the overall tape (High Five).

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