Wednesday Feb 2nd, 2005 - Day Trading the Emini

Hi Students and Guest's...

Great lesson on what to do when a Fed Report comes out about a rate hike Huh!

The lesson is stay on the sidelines till the market settles down... Clint, you couldn't of said it better...Do you feel lucky punk? Don't even think about it.

I tried to explain today about taking a small risk when you don't have the magic numbers...we missed yesterday because on the side of caution we stayed on the sidelines -- today I tried to show you how you can take that risk and try to get out with a breakeven or a tiny loss. This was a very good lesson today...Why? because it worked. We want to practice these when you have the Dow and Nasdaq moving in our direction as well as Stochastic's, the shape of the MA's, even had a curl up on the MACD's...a little mom after the 30-Minute Breakout, and the 3rd time through.

I asked the question about what does the ES like to do in this zone at 12 o'clock...you gave me the answer -- "If it's moving up it will flop". It likes to pullback during this time zone. If there are no reports coming out this is an opportunity...limit the risk and use the MA off of the double top. Yep this is a power trade...high risk, but you control that risk...it either works in five minutes when you get the set-up or pass, and when it gives you the confidence to take it -- go for it till you get a fish hook or a search light or you make a 1 point.

We would also look for that move from 1 -- 2 pm...but that did not mature today; the report put a damper on that one IMO. Well for those of you who have never seen this move when the Feds mess with the interest rate...this is what it looks like. Your thoughts.?

Marsh
http://www.simple-as-123.net

Joke for the day...

Some people are so indecisive that their favorite color is plaid.