Wednesday, September 29, 2010

One of my $DJI charts is showing the Dow Jones low in July and for 2010 was on the Yearly S1 Pivot(lower blue circle). It also shows the April high was at the Yearly R2 pivot(blue circle). Now the Dow is hitting it's head back at the Yearly R1 Pivot(top blue circle) at 10861. Do ya think smart money was selling in April at the YR2 Pivot, then buying at the YS1 Pivot and now is selling here @the YR1 Pivot? I do. I'm looking for a 4-5% pullback sometime in October.

Monday, September 27, 2010

Dow 11,000

What a rally! Back in August all the market pro's on tv and in the news paper, where calling for a ugly September, and some even said we'd see the stock market crash. In Late August the bull bear ratio was at the most bearish it had been since 2008. Here is a perfect example why you should NOT TRADE what you read or hear. My trading motto is: "Trade what you see(on the charts), and not what you think, hear or read!"
September 1st. we opened at 10,000 and we will end the month at 11,000. This coming week, I am looking for the weekly R2 pivot at 11035(10975 on the YM futs) on the Dow Jones to get tested. Support this week is at the 8dma @10670(and an open gap). December YM futs Monthly R2 pivot is at 10910. We should see a consolidation phase start soon.

Tuesday, September 21, 2010

you heard it here first

On September 2nd I said we had a gap up buy signal. I hope you all listened to my advise.

S&P up 100 pts in 15 trading days
Dow Jones up 1000 pts in 15 trading days
NDX up 250 pts. in 15 trading days

Take some profits as we have a Full Moon coming up later this week. We usually get a reversal during a full moon. Sometimes they are short term(2-5 days) reversals and sometimes there longer term(3 weeks +) like last months.

Sunday, September 19, 2010

Full Moon reversal later this week?

Last week most asset classes (except for bonds) went higher into quad expiration as I planned. We are on the verge of something big. Will it be a rip roaring rally higher or will it be a "fake out" again like in June and August? I think we are going to see 11,000 or 10,000 very soon. We may need to consolidate last weeks gains this week. The Dow Jones has an open gap from the August high's at 10700. I'm looking for that to get filled this week. Then we have the Harvest Full Moon on Thursday. This 3 week rally started on the Full Moon in August. Will it end on the Full Moon in September? This week, look for 1st resistance at 10700 then at 11000 (Mr2 pivot). 1st support is at 10500 then the open gaps at 10300 and 10000. Stochastics are overbought so be careful this week.

Monday, September 13, 2010

Triple witching / Quad Ex week

This week is Quad / Triple witching week. Look for strike prices to get pinned all week. Last week the S&P and the Dow Jones consolidated the previous weeks big rally. This week look for that rally to continue. First resistance this week are the open gaps at 10615 and 1120 on the S&P, and 1916 on the NDX. Above those are more open gaps at the 10700 strike price and 1128 on the S&P. The Monthly R1 pivot should be support this week. I'll get some charts up soon.

Friday, September 10, 2010

Dec NQ yearly pivots

I just rolled over to the December 2010 contract on the NQ(NDX). My first impression of the chart was "wow, the yearly pivot points(purple lines marked S1, P, R1, R2, R3) are working perfectly, on showing where support and resistance is". Professional NDX traders/market makers are using the the Yearly Pivots to buy and sell. You can see it on the chart(blue circles)!

Thursday, September 9, 2010

ym mid trade

I bot the YM pull back on the intraday mid(yellow line) at 10426 and sold at the r2 pivot @10455 for a quick scalp.

Monday, September 6, 2010

Shorty is still trapped

As per last weeks posting, the market did exactly as MPG said it would do. I hope your all profiting from this! This week, the S&P futures is close to the monthly R1 pivot @1108. That could be resistance for this week and we should see a little pullback or some sideways consolidation of last weeks gains. If not, look for the gaps at 1120 and 10650 to get filled. Longer term(3 months) we are still in the 1040 - 1130 trading range. I do expect a breakout of that range soon. This week watch 1108(MR1) on the S&P futures and 10500 on the Dow for resistance. Support is at 1075(MPP) and 10200(MPP). Also interesting is we have a new moon on Wednesday. This past June, July and August, the highs for the month where on the new moon. And the lows for those months where on the full moon. This months full moon is on 9/23. Or will the S&P futures pin the Yearly R1 pivot at 1135(1040 was the Yearly S1 pivot)? Hmmm

Thursday, September 2, 2010

Gap up buy signal

The Dow Jones gaped up yesterday, off the Yearly Pivot Point(purple line marked P and blue arrow) at 9950, trapping the shorts. The S&P did the same on the Yearly S1 Pivot at 1040(per Sunday's blog). We are back on a buy the dips buy signal, as long as 10200 holds. That's about the middle of yesterdays big up candle. The 20dma above is resistance at 10300. The Monthly PP is at 10219, which should be support now, and the Monthly R1 pivot is at 10525, which is next resistance. Also use the 8ema as the trend line. This trend should last to the new moon on Sept. 9th.. Open gaps/targets above are at 10415, 10650, 10700(see blue circles). A close below 10200 will bring us back down to the 10,000 gap.