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[Dwer]

Market Force: Bullish on lower drops with Neutral High Five. Caution on Mega Bearish High 5. Expect support on lower early drops with Neutral High 5.

Trade Setup Summary for Friday, May 14, 2004:
B@1091.00/S@1096.00 +5.00 pts.

Recap of Friday's Action:
Good Morning and welcome back from the weekend.

Our Headline Call on Friday read, "Bullish (Cautious). Look for a slightly lower opening and early price drop to support the market above 1090.00. Pressing too much below that will throw the Bullish Market Force into Caution with further downside. Holding that price area (1190.00) should send em higher again".

Our Cautiously bullish Headline panned out in the morning session as they pulled back and then later rallied up towards the Pit Bull 10 day moving average just below 1103.00 fufilling the Headline Call. Later in the session they fizzled out back to the 1093 area where they broke out from in the early session also confirming our caution.

We caught the profits in the middle and took the rest of the day off not interested in grinding it out on a Friday. Here are my Wrap Up comments for the day.

"With the flat opening today and the early pullback we wanted to focus on the Buy side according to our Headline Call.

The support came in just under the 1090.00 area at 1088.00 early and got going to the upside after the first hour. There was an upside BreakOut before the first hour and we wanted to be part of that.

We bought a pullback off a Trailblazer Level 1 up move and got long at 1091.00. Shortly after that the prices leaped higher towards 1095 then 1097. It was a quick move that rapidly backed off to the 1095-96 area and gradually started fizzling out. It was challenging seeing that nice move to 1097 and then watching the prices pullback all the way to the 1092 area.

Usually a leap off the open like that on a marked bullish Market Force day is going to continue. We held on and prices recovered but our trust in this Friday fickle market began to wane.

I had suggested getting out above 1095-96. Just when I put out the post to sell the long with the market trading around 1095.25-.50 they ran em up a bit and gave us a nicer fill at an estimated 1096.00 on our recommendation. So we were able to book +5.00 pts on that trade.

I had suggested that PRICES WOULD GO HIGHER but that we were going to cut the risk, take profits and call it a day.

Well, they did run em up to the 1101.00 area, pulled em back to hang in the 1097-98 area and then fizzled out into the close again back near 1094.

We are holding above 1090.00 as suggested as a bullish indication but sending us home for the weekend still scratching our head as far as seeing the long side take over.

I think it is safe to say that it can be attributed to the massive negative news drill over Iraq right now so it is to be expected. To have the market RALLY in the face of a tragedy is a bit of pie in the face and it is expected we just have to wait it out for some more positive developments. Have a good weekend and all the best to your families.

Today's Call & Briefing:
Our Headline Call today is also going to be Cautiously Bullish on EARLY LOWER DROPS which we expect will find support and move higher IF the High 5 are neutral to only slightly Bearish. If we got a heavy TRIN over 1.30 and the NAZ (our nickname for the Nasdaq composite index) is getting creamed hammered over -20 points or more ...then don't get too excited about the long side.

There are certain factors we will be looking for to get long and I will be updating you on our New Live Update Service. If we get a neutral High 5 though we are going to be expecting support on an early pullback.

The early morning action in the overnight Globex shows the market moving below the IMPORTANT SUPPORT OF 1090.00 and hitting lows so far of 1084.75.

As mentioned in Friday's Market Wrap Up it is obviously very difficult to get any rallies going in the face of all the negative news going on. Inspite of this the market has it's way of wiggling around such things just as it did when I called for bullish action near the exact bottom on the full moon day they started bombing Iraq.

I am NOT saying we are in a similar situation but the markets do not generally follow consensus views based on the news or regularly followed indicators. Anyway, we are up over 2000 Dow points since the Iraq bombing began some time ago and I feel we may be on the verge of launching the next wave up soon. This forecast does not in any way make light of the seriousness of the World situation. Having been a private researcher of Geopolitical secrets and appearing on the major television networks in regards to that before I can saftely tell you the situation is much, much worse than it appears on the television. Still, I think they will start rallying soon.

At this point our Market Force indicators are waiting for an OPENING DAY which will start a new Buy Mode with a strong rally day. After that occurs then we can determine if the rally will stick or go into what I call...an aberration. Using that information we can then determine market direction from that.

At this point I am watching for the reactions to attempts to OPEN the new Buy Mode up.

WHAT TO WATCH FOR TODAY: On overnight globex we have ALREADY crossed below the -4.25 stop/pivot on the Buy Pivot target at 1083.25 so we will now be watching for 1079.00 support and then 1075.30.

If the market somehow turns around to the upside before the opening (not expected) then we will be looking for any rallies to get hit with selling.

Value Area: 1,093.20 - 1,099.10
Prices trading below this overnight as mentioned should create a bearish tone to the market but let's see how the overall High 5 look first after the first hour.

A lower run that pushes back up to the bottom of the Value Area should find resistance at this 1093.25 area. Will depend on how low they take em overnight and early on the opening range area.

Buy Pivot Target: 1,087.50 - 1,088.50
As mentioned above, we have moved below the -4.25 stop/pivot at 1083.25 so this Buy Pivot zone will now become resistance to the upside initially depending on how they open.

We are expecting to find support unless there is some more monstrous news coming out and the High 5 are mega bearish. Watch 1075.00 for first support.

Sell Pivot Target: 1,102.00 - 1,101.00
Not expected to run up here today unless we get a surprise reversal off of these overnight globex lows and open just slightly lower and then push back over 1090.00.

10 Day "Pit Bull" Moving Average: 1,102.50
We tried to run up to this area Friday and bombed off of it heading lower confirming our CAUTION alert on a bullish move.

Now below this by 10 handles we are back in a Sell Rallies mindset until we get cooking back up towards this Pit Bull.

Pro Trader's Action
As professional S&P500 traders by working with the information in this Morning Call briefing all we are doing is looking at the Market Force and trying to catch a trade generally that is moving OPPOSITE of this force for a reflex reaction. That is how we make money with this service.

In trading the S&P500 there is a tremendous psychological factor involved as we are constantly taking positions that seem to defy common so called "Logic".

That however, is exactly why so many of our trades DO make money. We are fading the common consensus as Friday's example showed.

The key is to study our briefings and then put the numbers and commentary to the test. You will see how this approach is very effective.

Let's see if we can find some early support on a hammered lower opening and early first hour move. If we get the neutral or not totally Ugly Bearish High 5 then we should be able to catch a bounce off this lower action.

Good luck with your trades today and all the best of success. Mohan