Wednesday, October 25, 2006

Tight Range Trading with a Possible Breakout?

Review of last night's trades. The first 3 hrs after the opening bell was rather painful. The range was tight, at 5 pts. Quite a bit of indecision (B-PPF, Match) and as I mentioned before logging off for the night, we needed to see a BREACH, and a PPF (both preferably in Primes) before going LONG. The market has given us the Prime Breach, near the close, so a Prime PPF thereafter would give us a good reason to go LONG tonight. However, as the TREND Chart is now in Prime territory, LONGS still have to be careful, as a pullback in PRICE is expected. Need to watch how far PRICE pulls back. Uptrend very much still intact. No signs of failure of 1398.00 as yet

05:50pm Globex action is showing exactly what I said this morning. The pullback to 1381.75 (In Prime, on the Trading chart), and now PRICE is challenging the last PRICE high near the close yesterday, at 1385.50. Failure to clear this last high, would be a minor PPF, and it will be my signal to go SHORT (TREND Chart has started to turn down - giving the warning to LONGS)
05:54pm A Match has occured (A sign of weakness - a reminder again that we trade from STRENGTH). Watching closely for a PF.
07:34pm Oops...PRICE just cleared last night's high at 1385.50. Will have to look for a PPF to go LONG. Again, a word of caution here, that the TREND Chart has turned down, so I have to be careful with LONGS.
09:44pm Series of Oscillation PPFs on the Trading chart - Consolidation. Will wait to see which way it breaks. Again, TREND chart is still pointing down.
10:04pm A 2 pt range in the last half hour...so exciting!
10:28pm PRICE is doing stair-stepping...TREND chart has now turned up. Ho Hum...very slow action.
10:34pm Still sidelined.
11:02pm With the FED meeting today, it looks like we are heading into a slow session into lunch.
11:26pm Attepting a SHORT here at 1384.25. STOP 1385.25
11:36pm Stopped out. - 1.00pt. Trading sucks tonight.
12:23am Wow! It's worst than watching paint dry! Enough of this...G'nite

2 comments:

Anonymous said...

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gerimegaly said...

Hi, thx for the compliments. Will email u the details. Cheers!