ewelin
Jun 22, 2010, 12:10 AM
Hello fellow traders,
Were you looking for a home run in the markets in early June? While some were positioning themselves for one, we at Trading da Numbers (TdN) were helping our subscribers load the bases with singles and doubles. Our moment-by-moment analysis of how the market was reacting to key price levels had us scoring when each player took up the bat.
Week 1: Up and down, but no crash
Over the Memorial Day weekend, subscribers were cautioned not to expect the market to tumble, but instead to watch for confirming evidence in the form of sustained loss of support and downward acceleration.
17004
As our Market Trend Indicator
chart showed at the close on
the Friday before Memorial Day,
ES and the S&P 500 had failed
to exceed the previous day's
high (1,103.0 and 1,103.52
respectively) and were parked
near the lows of the day.
Without those elements, it was safer to assume the market was still in "rally mode." On Tuesday (the first full trading day of the week) the market immediately set about recovering the opening gap down and then traded back and forth between key levels before losing support late in the afternoon. By watching how the market behaved at those key levels, we kept our subscribers trading in the correct direction at each juncture. At the end of the day, subscribers were alerted that the closing levels could produce a sizeable bounce if slightly higher levels were recovered.
As predicted, Wednesday morning saw a test of those requisite levels, resulting in the S&P regaining important levels and turning them into support and proceeding to print a sizeable bounce. Our subscribers were positioned to take full advantage from the rally, and they also were reminded of key resistance levels above which would have to become support for confirmation of a rally beyond Wednesday.
17005At the end of Tuesday, ES
again sat near support levels,
but there was not yet
confirmation for a true slide
downward. Our subscribers
were told there could be a
substantial bounce overnight.
17006Overnight and into Wednesday,
the expected bounce
materialized, eventually taking
the ES contract to the 1098 price
level by the end of the day.
17007Resistance materialized late in
the day, and the market
turned that resistance into
support on Thursday. However,
there continued to be a clear
price ceiling.
On Thursday, we advised subscribers to be wary of a strong rejection of that ceiling, but also where loss of support would add credence and the market could regain downward momentum. Friday's gap down demonstrated exactly the kind of rejection we were wary of, and the market proceeded to slide through support levels, one after another. Knowing the levels helped our subscribers find low-risk entries for getting in on the steep downward move.
17008 17009
Week 2: Down and up, with many opportunities
TdN's market analysts helped our subscribers get ready for Monday's action by alerting them to key levels that would signal a reversal of the downtrend. Those levels actually served as resistance, allowing the S&P to test them and then resume its slide into the 1040 area already identified as support. Key levels were then suggested for market action on Tuesday, and each served as resistance for several profitable trades. In addition the idea of an early weak low and a late week high was also mentioned. A late-afternoon rally area beyond those resistance levels alerted subscribers to watch for continued upward movement into Wednesday, which is exactly what transpired.
17010 17011
Wednesday morning's upward move from support gave subscribing traders nearly 14 ES points, but TdN chatroom moderators noted in real-time that the morning rally was continuing on decreasing volume, and that the a key resistance level lay just above. The market tagged the resistance level and promptly reversed direction for the rest of the day – again turning numerous support levels into resistance.
17012 17013
However, to ward against our subscribers becoming too bearish after Wednesday's decline, our bulletin ahead of Thursday mentioned a price level that would indicate resumption of a rally if it became support. Subscribers did well to have been warned, as the market opened on Thursday ABOVE the threshold level that was expected to give bulls the upper hand. The market continued in "rally mode" into the close of the week.
17015 17016
A wise player knows base hits get you more points
Setting yourself up to take advantage of a home run in the markets is just that – setting yourself up. At TdN, we show subscribers how to trade profitably almost every day. An unbiased approach to trading is the hallmark of TdN – neither bullish nor bearish, but adaptable and responsive.
As a trader you have heard the saying, "The trend is your friend." Come check out TdN, where we can show you how to spot the trend and ride it profitably. A 1-month trial membership is only $50. We would be delighted to share our trading knowledge with you.
Were you looking for a home run in the markets in early June? While some were positioning themselves for one, we at Trading da Numbers (TdN) were helping our subscribers load the bases with singles and doubles. Our moment-by-moment analysis of how the market was reacting to key price levels had us scoring when each player took up the bat.
Week 1: Up and down, but no crash
Over the Memorial Day weekend, subscribers were cautioned not to expect the market to tumble, but instead to watch for confirming evidence in the form of sustained loss of support and downward acceleration.
17004
As our Market Trend Indicator
chart showed at the close on
the Friday before Memorial Day,
ES and the S&P 500 had failed
to exceed the previous day's
high (1,103.0 and 1,103.52
respectively) and were parked
near the lows of the day.
Without those elements, it was safer to assume the market was still in "rally mode." On Tuesday (the first full trading day of the week) the market immediately set about recovering the opening gap down and then traded back and forth between key levels before losing support late in the afternoon. By watching how the market behaved at those key levels, we kept our subscribers trading in the correct direction at each juncture. At the end of the day, subscribers were alerted that the closing levels could produce a sizeable bounce if slightly higher levels were recovered.
As predicted, Wednesday morning saw a test of those requisite levels, resulting in the S&P regaining important levels and turning them into support and proceeding to print a sizeable bounce. Our subscribers were positioned to take full advantage from the rally, and they also were reminded of key resistance levels above which would have to become support for confirmation of a rally beyond Wednesday.
17005At the end of Tuesday, ES
again sat near support levels,
but there was not yet
confirmation for a true slide
downward. Our subscribers
were told there could be a
substantial bounce overnight.
17006Overnight and into Wednesday,
the expected bounce
materialized, eventually taking
the ES contract to the 1098 price
level by the end of the day.
17007Resistance materialized late in
the day, and the market
turned that resistance into
support on Thursday. However,
there continued to be a clear
price ceiling.
On Thursday, we advised subscribers to be wary of a strong rejection of that ceiling, but also where loss of support would add credence and the market could regain downward momentum. Friday's gap down demonstrated exactly the kind of rejection we were wary of, and the market proceeded to slide through support levels, one after another. Knowing the levels helped our subscribers find low-risk entries for getting in on the steep downward move.
17008 17009
Week 2: Down and up, with many opportunities
TdN's market analysts helped our subscribers get ready for Monday's action by alerting them to key levels that would signal a reversal of the downtrend. Those levels actually served as resistance, allowing the S&P to test them and then resume its slide into the 1040 area already identified as support. Key levels were then suggested for market action on Tuesday, and each served as resistance for several profitable trades. In addition the idea of an early weak low and a late week high was also mentioned. A late-afternoon rally area beyond those resistance levels alerted subscribers to watch for continued upward movement into Wednesday, which is exactly what transpired.
17010 17011
Wednesday morning's upward move from support gave subscribing traders nearly 14 ES points, but TdN chatroom moderators noted in real-time that the morning rally was continuing on decreasing volume, and that the a key resistance level lay just above. The market tagged the resistance level and promptly reversed direction for the rest of the day – again turning numerous support levels into resistance.
17012 17013
However, to ward against our subscribers becoming too bearish after Wednesday's decline, our bulletin ahead of Thursday mentioned a price level that would indicate resumption of a rally if it became support. Subscribers did well to have been warned, as the market opened on Thursday ABOVE the threshold level that was expected to give bulls the upper hand. The market continued in "rally mode" into the close of the week.
17015 17016
A wise player knows base hits get you more points
Setting yourself up to take advantage of a home run in the markets is just that – setting yourself up. At TdN, we show subscribers how to trade profitably almost every day. An unbiased approach to trading is the hallmark of TdN – neither bullish nor bearish, but adaptable and responsive.
As a trader you have heard the saying, "The trend is your friend." Come check out TdN, where we can show you how to spot the trend and ride it profitably. A 1-month trial membership is only $50. We would be delighted to share our trading knowledge with you.