Mohan 13/07/04
Enviado: 13/7/2004 13:54Market Force: Bullish. We are expecting a strong stock market performance today.
Trade Setup Summary for Monday, July 12, 2004:
B@1107.75/ S@1113.00 +5.25
Recap of Monday's Action:
Good Morning and Welcome to Tuesday's Action.
We were looking for an early drop in the markets on Monday to be bullish for the upward price movements. This is what we got after downside pressure all day. Even inspite of a very negative TRIN and Nasdaq the underlying bullish force we had identified was ready to spring. Prices later crossed 1115.00 which we had mentioned would be a bulish sign but rolling into the close they couldn't sustain the 15's.
Here are my closing comments for our daily Live Update Service.
"The market opened a bit lower today at the 1111.00 area and we wanted to look for a long position on a lower early move.
There was a hard, fast spike lower which occured just after the first half hour and we recognized that as our signal which these often are on Monday's trading action.
We got long at 1107.75 average price and held all day with another "go nowhere" market initially.
We could see the opposite action occuring on today's trade compared to Friday with the lower spikes getting bought up rather than continuing to sell off and reports of institutional buying. This kept us long.
Later after the 2:00 est time frame prices ramped up and we were able to get out at the pre-projected 1113.00 price area for a +5.25 profit on the trade. This one trade took us up into the final closing 1.5 hours so we stopped trading for the day."
Today's Call & Briefing:
I am expecting a bullish day today with the market turning around to the upside and stretching up towards the Pit Bull at 1123.00 and possibly higher.
We are still in a Sell Mode even if we get a rally up to 1128.00. However, trade in the 1128.00-1132.00 becomes a sort of "Mystery Zone" where we would expect prices to fall back but if they hang up in there we could be on our way to further upside.
The key will be to see if we can get a Mega Bullish High 5 going today. If that is the case then after the first hour they should Breakout and we will be on our way.
Insitutional buying was clearly present on the early Monday action but you can never be quite sure what those guys are up to. Seeing how a lot of institutional participation has been lacking I tend to take it as a bullish sign..even if temporary.
So for today: Let's watch for a Bullish BreakOut on the highs of the first hour if we can get bullish High 5 readings.
On another lower drop we can also continue to buy the hour one low area with the tape in decent shape.
If we get a HUGE GAP UP and an early rally then things may have gotten carried away and we will need to be cautious about how far they can rally. We may need to short such a setup.
Be mostly focused today on getting on the long side as I expect they will take em up some more.
Value Area: 1,106.50 - 1,113.00
Trade holding above 1113.00 is bullish and we want to stay long. A pullback below this that holds lower with a Nasdaq weakening and TRIN high again could mean yesterday was a joy pop only.
Buy Pivot Target: 1,107.75 - 1,108.75
Look for a long sided trade down here if we get the lower early drop and move towards the Hour One low in this area first.
If that occurs then we are going to be looking for support to come in for a further climb.
Sell Pivot Target: 1,117.75 - 1,116.75
If we can blow through this 1118.00 area to the upside this was the big resistance area on later Tuesday and Wednesday of last week.
Above 1118 is a run up to 1123.00.
1122.00 is the +4.25 stop/pivot.
10 Day "Pit Bull" Moving Average: 1,123.00
This will be an initial strong resistance level. Will look forward to seeing what they can do with the price up here. There is a chance of a run up to 1128.00 but in that area it is strong decision time as to continuance further upside or resumption of the Sell Mode which is most likely.
We are in a seasonally bullish period so that may have some effect and we get a traditional "Summer Rally" going into August moving back up to 1144.00
Pro Trader's Action
The stage is set today for a bullish day if we can get the High 5 cooperating with the price action.
If so I have outlined all the ways of viewing how we should be able to get on the main trend of the day.
If they run up early with a strong rally and gap up then we can fade an over done move after a few hours of trading higher.
Let's have some fun today and see if we get a strong bullish move.
All the best, Mohan
Trade Setup Summary for Monday, July 12, 2004:
B@1107.75/ S@1113.00 +5.25
Recap of Monday's Action:
Good Morning and Welcome to Tuesday's Action.
We were looking for an early drop in the markets on Monday to be bullish for the upward price movements. This is what we got after downside pressure all day. Even inspite of a very negative TRIN and Nasdaq the underlying bullish force we had identified was ready to spring. Prices later crossed 1115.00 which we had mentioned would be a bulish sign but rolling into the close they couldn't sustain the 15's.
Here are my closing comments for our daily Live Update Service.
"The market opened a bit lower today at the 1111.00 area and we wanted to look for a long position on a lower early move.
There was a hard, fast spike lower which occured just after the first half hour and we recognized that as our signal which these often are on Monday's trading action.
We got long at 1107.75 average price and held all day with another "go nowhere" market initially.
We could see the opposite action occuring on today's trade compared to Friday with the lower spikes getting bought up rather than continuing to sell off and reports of institutional buying. This kept us long.
Later after the 2:00 est time frame prices ramped up and we were able to get out at the pre-projected 1113.00 price area for a +5.25 profit on the trade. This one trade took us up into the final closing 1.5 hours so we stopped trading for the day."
Today's Call & Briefing:
I am expecting a bullish day today with the market turning around to the upside and stretching up towards the Pit Bull at 1123.00 and possibly higher.
We are still in a Sell Mode even if we get a rally up to 1128.00. However, trade in the 1128.00-1132.00 becomes a sort of "Mystery Zone" where we would expect prices to fall back but if they hang up in there we could be on our way to further upside.
The key will be to see if we can get a Mega Bullish High 5 going today. If that is the case then after the first hour they should Breakout and we will be on our way.
Insitutional buying was clearly present on the early Monday action but you can never be quite sure what those guys are up to. Seeing how a lot of institutional participation has been lacking I tend to take it as a bullish sign..even if temporary.
So for today: Let's watch for a Bullish BreakOut on the highs of the first hour if we can get bullish High 5 readings.
On another lower drop we can also continue to buy the hour one low area with the tape in decent shape.
If we get a HUGE GAP UP and an early rally then things may have gotten carried away and we will need to be cautious about how far they can rally. We may need to short such a setup.
Be mostly focused today on getting on the long side as I expect they will take em up some more.
Value Area: 1,106.50 - 1,113.00
Trade holding above 1113.00 is bullish and we want to stay long. A pullback below this that holds lower with a Nasdaq weakening and TRIN high again could mean yesterday was a joy pop only.
Buy Pivot Target: 1,107.75 - 1,108.75
Look for a long sided trade down here if we get the lower early drop and move towards the Hour One low in this area first.
If that occurs then we are going to be looking for support to come in for a further climb.
Sell Pivot Target: 1,117.75 - 1,116.75
If we can blow through this 1118.00 area to the upside this was the big resistance area on later Tuesday and Wednesday of last week.
Above 1118 is a run up to 1123.00.
1122.00 is the +4.25 stop/pivot.
10 Day "Pit Bull" Moving Average: 1,123.00
This will be an initial strong resistance level. Will look forward to seeing what they can do with the price up here. There is a chance of a run up to 1128.00 but in that area it is strong decision time as to continuance further upside or resumption of the Sell Mode which is most likely.
We are in a seasonally bullish period so that may have some effect and we get a traditional "Summer Rally" going into August moving back up to 1144.00
Pro Trader's Action
The stage is set today for a bullish day if we can get the High 5 cooperating with the price action.
If so I have outlined all the ways of viewing how we should be able to get on the main trend of the day.
If they run up early with a strong rally and gap up then we can fade an over done move after a few hours of trading higher.
Let's have some fun today and see if we get a strong bullish move.
All the best, Mohan