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[Dwer]

Market Force: Bullish/Neutral. Look for further rallies to start getting hit with selling. One more mild day up expected for today after pullback from early rally.



Trade Setup Summary for Tuesday, March 30, 2004:
1) B @ 1120.00/ Sell 1122.50 +2.50 points

TOTAL: +2.50 PTS.

Recap of Tuesday's Action:
Good Morning and thank you for joining with us today for Wednesday's action.

On Tuesday our Headline Call was looking for further rally but cautioned about some selling to come in on a higher opening and early rally.

With the new Buy Mode active we got the early higher opening and rally and the subsequent sell off from there which was mild. This took prices down to the BreakDown where we had waited to buy wanting to stay on the side of the Buy Market Force for Tuesday.

We saw prices move at first right up to the BreakOut and it could be questioned why I did not recommend selling there due to the warning in the Headline Call about an early sell off.

In live trading, which are the only results we are posting now on our Morning Call briefings, you have two important factors.

On one side you want to have the bravado to go after trade opportunities that appear within your methodology BUT you also have to temper those trades with the urgent caution of capital preservation and as much account security as you can.

My feeling on Tuesday's trading and as expressed in the Morning Call Briefing yesterday was that I wanted to be a bit more cautious on the sell side as we have had two days where the pullbacks were very difficult to make money off of. I wanted to recommend taking a trade from the buy side on a move lower.

That is what we got later in the session Tuesday and we got long.

I had been trying to hold out for prices to hit 1125.00 area as expressed most of the session but there was some very choppy trading around the 1123.50 area. When we ran through that price again (finally) in the later session (one hour before the close) I had opted to take the profits.

Later they did push up slightly over 1125.00 in which case we left a few points on the table but in the extremely low volume, low range environment we were in on Tuesday it made sense as prices could have just as easily collapsed back to our entry price near 1120.00 and left us with nothing or indeed a small loss.

It is important to recognize that we are in a new environment in the markets entirely different from the year 2003. You can see that I have changed the face of the Morning Call some.

I am reporting the Headline Call in a slightly different way by stating first the Market Force primary direction, and then a simple commentary on direction.

In the Trade setup and summary I am copying the LIVE TRADE RECOMMENDATIONS from our new Live Update service.

In this way you can see the exact trades that I recommended and how things panned out in real time. By doing this we create a trading atmosphere of total thoroughness in reporting the live action in relation to our NEW Live Service.

It has been a very rough 3 month period in the markets for traders. Last Friday was one of the lowest volume days of the entire past year and Monday and Tuesday have not been much better.

I have used this period to re-tool many of the ways we are approaching the markets, the Hour One pivots, the Buy/Sell pivots and our High Five indicators in line with what is currently REAL AND VITAL in the S&P500. Extra CAUTION has been the key word during this time.

Discovering what works best in a new environment takes time, many market samples, and surveying market reactions to different scenarios. The clarity of these reactions is begining to reveal itself in the system we have and are continuing to develop to capture the main Day Frame trends in the daily S&P500 market.

I appreciate very much your support and understanding in watching all of this unfold as we move into the next chapter of the Morning Call and the way we approach the markets. 2004 promises to be a very exciting and profitable year for us using the new tools we have developed.

Today's Call & Briefing:
The Market Force for today is still bullish but a "neutral" caution has come into play especially on any higher openings and early rallies.

We are still expecting a move up to the 1137 area (with that number subject to change as new numbers come into play) but that may come after some consolidation lower first.

For today we are going to be looking for another stab at the highs of Tuesday at 1126.75 and then an attempt to move through the 1130.00 handle trying to stretch for that 1137 area.

With the Sell Pivot target just below the 1130 handle and the combined +4.25 stop/pivot at 1133.50 we are not expecting the market to move beyond this for today. In fact we are expecting it to SELL OFF from those levels if we reach them.

We will be looking for Trailblazer formations up in that price area (1129-1133) for going short at any time after the opening.

On a LOWER OPENING and early move lower we will continue to BUY and stay on the long side for ONE MORE DAY UP. This higher day today will either be generated from an early rally that sells off and consolidates showing a weak up day or from a lower drop that moves higher and consolidates showing the same.

TODAY IS EXPECTED TO BE A "SCALPING DAY".

Value Area: 1,121.00 - 1,126.60
Watch for trade to move above the VA and then pullback into the 1126.00 zone and lower for the weaker up day close.

Buy Pivot Target: 1,120.75 - 1,121.75
Look for Trailblazer buy formations here on a lower opening and early lower drop. Ideally we would want to wait for the first hour to complete before buying in this zone.

This would give us some better information on the High Five and the general market condition before entering a trade.

Sell Pivot Target: 1,129.25 - 1,128.25
Watch for early Trailblazer formations in this zone on AN UP OPENING and an early rally. 1133.50 is the +4.25 level and should hold the Buying back.

10 Day "Pit Bull" Moving Average: 1,108.90
We are still buyers are large drops above this number as the Buy Mode stays intact. We are expecting the Buy Mode to make one more move higher before we start to see things shift back to the downside.

We are still some days off before determining when we are going to "roll into the sell mode" but this should be occuring soon within the next few sessions it is expected.

Pro Trader's Action
We are looking for one more weak day up today and that should be generated ideally from a higher opening and an early rally attempt that we can short. I say ideally because the way the Market Force is set up for today that would appear to be the easiest trade facilitation.

Let's see how the market opens up and we can plan our trades accordingly.



Let's have some fun trading today and get in on some good trades. I'll see you in the action. Mohan