Thursday, January 31, 2008

Up....And Then Down.

My ES SWING Chart above...
I don't know about you, but it seems to me that it is getting more & more predictable to trade FED days. Before the announcement of the rate cut is made, the market grinds itself higher and the moment the announcement hits, PRICE rallies, only to lose steam and to close the session on a low - "A Cleansing of the Market", killing all the Bears, and Bulls simultaneously, if you will. I believe the Market will react vice versa, if no rate cut is announced.
In any case, looking at the above chart, we are now on a Bull TREND (3 Legs established) and the only way this can be invalidated, would be for PRICE to fall through last PRIME Support at 1310.25. So, keep a look out for this level...

Oh...and in case you didn't know, the FED cut rates by 50 basis points, to 3%.

2 comments:

acapre said...

Hello! I find your blog helpful since I also trade the ES. Are your charts setup like ProfLogic on ET? I'm trying to find out how to replicate those charts in Neoticker. I do use constant volume. Thanks.

gerimegaly said...

Hi, thx for your compliments. Yes, I am a student of Prof Logic and I trade his methodology. Please continue to support my efforts in maintaining this blog. Thx!