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[Dwer]

Market expected to find support today on any lower,early prices and move higher as we find that too many Bears keep entering the market when there are lower prices.

Trade Setup Summary for Monday, February 9, 2004:
1) Sell BreakOut at 1142.00 or higher/ Cover for for 2-3 pts. when market failed to break below 1138.00 projected support given in "Morning Call".

2) Sell 1143.25/ cover 1140.75 ...+2.50 (1:34 est Trailblazer 3rd level on sell side)

Total: +4-5pts.


Recap of Monday's Action:
Good Morning and thanks for joining us today.

Interestingly enough our exact projected numbers of 1138.00 and 1142.00 basically bracketed in the markets trading range today. We saw the BreakOut come in right at 1142.00 and a slight push above it brought the prices back down to test 1138.00 which was our second level of support for measuring a further downside move.

There was not much to say about today except that we did get some sell off from the BreakOut and there was one significant and clear Trailblazer 3rd level Sell signal.

I've outlined that trade and the time it occured above in the recap section and if you look at your one minute charts set up with the 9&18 SMAs you will easily see the 3 levels up. Remember, we want to trade the TCF Trailblazer signals normally on the same side of the market as the Hour One pivot, High Five and the Headline Call. Sometimes we would be interested in taking a reversal in the opposite direction if it showed extreme characteristics in terms of the 3 Level move.

DON'T MISS MY SEMINAR ON TRAILBLAZER AND OUR OTHER TCF SETUPS IN DELRAY BEACH, FLORIDA ON FEBURARY 28-MARCH 2. I will be going over the Trailblazer setup and the other TCF setups in great detail which will include LIVE TRADING on Monday and Tuesday. In this way you will be able to see all the intricacies of putting on these trades which will include working with the High Five, the Headline Call and other special indicators that I use to stay on the right side of the action. CONTACT THE OFFICE TODAY TO ATTEND AS LIMITED SEATING IS FILLING UP FAST: cALL (800) 806-4801 OR (561) 750-1278.

Today's Call & Briefing:
Well, we did not get an official aberration on the current Sell Mode we are in on the TCF Market Force indicators. As explained in yesterday's Morning Call that would have occured if we saw prices push above 1142.00 and stay there.

With the drop down to 1138.00 we were ready to confirm a lower move but the excessive bearish positions in the market firmed up the lows and we got a neutral close.

Today should be a pivotal trading day in seeing if we are going to send the Sell Mode into aberration above 1142.00 or continue the drop lower with the projected lower target of 1112.00 coming into play.

Seasonally it is a period of weakness going into the summer and if the normal pattern emerges after a few weak months we would see a summer rally emerge. Will this period indeed be unusually weak or will it merely be a flat to slightly lower type of trading situation? I am opting more for the flat to lower type trade and not a large downside move as we see more of the sidelined money enter the markets on pullbacks. This projection would be based on what I had talked about before with 2004 being a continuation of the bullish action we have seen.

Frankly, the longer term does not concern us but when we hit these Crossroads like we are right now the last few days I try and give the perspective of longer term direction from the work I do with that.

For right now we want to get focused on catching the correct TCF setups that are occuring on the right side of the market. Although we are still in this tight range and low volatility period we have to simply roll up our sleeves and deal with what has been given to us.

If the ranges are tight and the volatility is low...then so be it. I have introduced the Trailblazer TCF setup so you can scalp some nice points and make a living. If we can just average 5 points a day from doing that we will be able to show excellent months easily on par with the best months from the older TCF setups before the ranges shrunk. When and if those return we will be easily able to adapt accordingly and the Trailblazer setups will get that much more rich with that increased range.

TCF SETUPS TO WATCH FOR TODAY: Today is going to be a big caution day. Most likely the best Hour One setup to watch for today will be to Buy the BreakDown.

If we go up and hit the BreakOut again as the first Hour One pivot then things could get a bit tricky and we may want to be careful selling there.

There is always the chance of a Bear Ugly market but with the ranges and volatility changed we have not seen the normal type of Bear Ugly days lately. Still, on the release of any extremely negative news that is affecting the markets we would want to be on the lookout for a second level sell off in the markets.

The overall bias as shown in our Headline Call is for higher prices off of lower early moves.

Value Area: 1,139.00 - 1,141.80
This same bracketed area of support and resistance naturally showed up in today's value area as that is where most trade was facilitated yesterday.

Watch for a move below 1139.00 to find support and then be drawn back up into the VA moving towards 1142.00 again. This would correlate with our projection for higher prices off the early lows.

Buy Pivot Target: 1,137.25 - 1,138.25
No trade at this pivot target today. Watch for -4.25 1133.00 as support to come in below this number.

Sell Pivot Target: 1,143.25 - 1,142.25
No trade at this pivot but watch this area carefully for 3rd level TCF Trailblazer rallies that can be sold into. Just remember that the Trailblazer has a different stop structure than the other TCF setups and is managed differently.

Seeing such a formation though would be a good sign for selling this price area. 1147.50 would be expected to hold back the buying however be sure to remember that a move above 1142.00 throws the Sell Mode into aberation and we would want to start buying drops.

We are still in the Buy Drops mode with the Pit Bull as shown below so this type of aberration on the sell mode would not surprise me.

The bottom line is that this market has to start showing some serious weakness signs in here soon or we are going higher again.

10 Day "Pit Bull" Moving Average: 1,132.90
Continue to buy large drops that come within this price zone. As long as we are above the Pit Bull we need to consider the moves lower as buys.

We will still sell rallies in a bullish Pit Bull environment like now but we are quick to buy the larger scale moves down to the Pit Bull.

Pro Trader's Action
Let's get focused on making 5 points a day average using the TCF setups we show you here. No use in worrying or waiting for volatility to come back whether that is by seeing the ranges open up directly, watching the VXO or any of these other volatility oscillators, or by simply seeing the livliness of the price action. It's all the same really. Either the volatility is here or it isn't but we still need to go out and make a living trading the S&P500.

So focus on accumulating an average of 5 points a day and see yourself getting to the point where you can put on 25 "electric cars" (Emini S&Ps) using an 80-100K account and you will be able to make a million dollars a year in this business. So by starting simple, focusing on a realistic daily goal, and then applying the professional principles we show you here on the Morning Call...you are on your way.

Good luck with your trades, don't worry about range or volatility anymore, and I'll see you in the action. Mohan