Fisco continua a tributar mais-valias se a herança se mantiver indivisa

[Dwer]

Market Force: Bearish on early higher prices. If market gaps open lower and runs lower early then market expected to find support and bounce off lows holding bounce into the close.

Trade Setup Summary for Tuesday, August 3, 2004:
1)S@1102.50/B@1103.75 -1.25

2)S@1105.00/B@1099.75 +5.25

TOTAL: +4.00

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

We had a decent sell off from the highs put in yesterday's early action as suggested in Tuesday's Briefing.

This could be starting a further slide downward as the Sell Mode continues OR we will be on the alert for support to come in and further upside strength. I'll outline the symptoms we will be looking for below.

Here are my closing Wrap Up comments for the Live Update trading action on Tuesday.

"In today's action we wanted to come in ideally looking for a short position above the opening.

We got a flat opening of 1104.50 which pulled back right away putting in a low of 1100.50. We started by going short at 1102.50 an attempt to move lower from a run up off the lows. It was a trade designed to trade the markets down towards the Hour One low if that was the first pivot hit. These trades can use very tight stops which we placed just above 11.3.50 that got hit at 1103.75 for a -1.25 loss.

After that we saw that the Hour One high was going to be hit and we wanted to be short right at that number which was 1105.25. With a market order recommendation we got short at 1105.00 and held short.

It took the market several hours to break down to our goal lower which was just below the Hour One low of 1100.50 at 1099.25. Prices dropped down and tapped that exact price signaling our liquidation of the position which was officially filled we estimated at 1099.75 for a +5.25 profit.

So on balance +4.00 for the day with the market bouncing off that number and eventually drifting just slightly lower into the close as we suggested it would on the Live Updates."

Today's Call & Briefing:
Today will be an important pivotal day in showing us if we are going to be heading substantially lower OR we will be finding support near 1091.00 and start to climb again.

This is very relevant to today's trading because we want to position ourselves in today's market to catch that decision but with caution and clarity.

Here is what we will be looking for.

If the market OPENS HIGHER AND RUNS HIGHER FIRST then we will expect a further Sell off that will be searching for a specific level to find support.

*Now keep in mind that on the overnight globex trading we have already had some severe sell off action with one specific candle that showed the high of the candle around 1095.00 and the low around 1089.00 ... a whopping 6 point drop on that one price. Now they recovered to float in the 1093.50 area but that information is important.

If they GAP LOWER today and move lower then we are going to be on the lookout for earlier support to come in after the Selling gets overcooked to the downside. It's hard to say where that would stop but using the numbers we offer daily I'll make some estimates and then in the live action I will be able to determine more.

Using the Hour One High and Low today and comparing them with the Pivot targets we will be able to determine what is going to occur most likely today.

Value Area: 1,100.20 - 1,105.00
Trade below the Value Area is Bearish and we have closed below this number so that is a telling sign for the markets.

If we drop lower and then move all the way back up into the VA above 1100.25 then that will be a bullish support sign for sure.

Buy Pivot Target: 1,094.00 - 1,095.00
The Buy Pivot target has been taken out in overnight trading as discussed above including the 1089.75 (-4.25 stop/pivot) number which so far has supported the drop.

Let's see if tomorrow we can get this same support going or they punch em lower below this. BELOW THIS SUPPORT COMES IN AT 1085.00 AND THEN 1081.00 WHICH IS VERY STRONG SUPPORT.

Sell Pivot Target: 1,103.00 - 1,102.00
We want to be ready to sell this area if we get a higher opening and early rally up to this price area. It is unlikely this will occur due to the strong drop overnight but be ready for resistance to come in here on any move up to this level today.

10 Day "Pit Bull" Moving Average: 1,094.50
We held this area Tuesday but overnight on the Globex session coming into today we blew through this number to the downside.

After dropping to 1089.00 on the lows and then recovering to this number it has now become a "Line in the Sand" for seeing if we push lower OR we start finding support and once again attempting to rally in line with the seasonal bullishness and the Presidential election cycle bullishness.

Pro Trader's Action
Although the market continues to provide unusual puzzlements we still can navigate through these rough waters using our TCF2004 approach to the markets.

In a period when so many S&P500 systems and trading methods I am watching are getting obliterated and many senior experienced traders are having their heads handed to them our TCF2004 approach treading water and not getting hammered. It's important to be able to recognize this quality in a system and method when times are extremely difficult.

Today we will be willing to take some extra time and really let the market sort itself out so we can do all we can to get on the right side whether that is going to be a continued slide lower OR if we are going to find support and bounce off that support holding into the close.

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