Some Observations from Thursday April 14th

Hi Students and Guest's...

Very interesting day, and also very profitable...these were the opportunities we looked at in the open Hotcomm room today; patience really paid off again like yesterday. I really expected a retracement today; but you just have to go with the flow. We started downhill in a Descending Channel...and the market was pretty bearish with the Magic Numbers close at hand.

1. At 9:50 we noted a TT...set-up for the 10 o'clock reverse, and early 30-minute BO.

2. 10:25 -- 10:30 Reverse...very nice set-up and we noted the long shadow; a big clue. If you took this PT...my advise was the candle above the blip or second candle above the MA...both would have worked.

3. Descending Channel -- We had the DT at the top of the descending channel...this is a set-up to trade with the trend in a descending channel. Also had the 30-Minute Breakout (breakdown for Elliott) second time through. Very close to 12 o'clock so I thought it best to wait and see if it was going to Hop or Flop. It did try to Hop, but in the last 12 months or so...it would stall and most of the time moved lower. When we got the 2 nd candle below the MA and risking less than 2 points looked very promising...Exit at support or use a tight 1 point stop.

4. Next we had the breakout (breakdown for Elliott), and set-up with the trend during that 1 o'clock move we talk about everyday -- it was at major support at 1170.00. I was asked how to take that trade and we decided we would take it the 2 nd. time through or use the 1 point below support and let the market come to you. Both worked. Nice trade Rynn!

5. I was through for the day...but if you want to be a Contrarian the DB looked very enticing at 1:35.

Any thoughts or questions about today -- if not I will see you in the open Hotcomm room tomorrow morning for about an hour or so. Friday has a bullish bias...and I will still be looking for that retracement.

Check out the chart at http://www.simple-as-123.net/charts/April14-05Thur.png

Marsh

Loosen up Pilgrim...

Tomorrow is the most important thing in life...Comes into us at midnight very clean. It's perfect when it arrives and it puts itself in our hands. It hopes we've learned something form yesterday.

John Wayne (1907 -- 1979) Actor