Thursday's eMini Class

Hi Students and Guests...

Interesting day for a Thursday...we were in a descending channel most of the morning, and then we started to get a crossover on the fast MACD, and Stoch's was shooting straight up...I expected the 12 o'clock flop, but nooooo!

Now that is a big clue...we got the magic numbers at 12:15 and they were moving -- that is another big clue. Now for the risk that was pretty spooky; the Stochastics looked overbought, but the MACD looked good, TRIN was bullish, the 15-minute MACD was still looking up hill, and the TICK was moving up to the 800's. So with the odds in our favor, and having the magic numbers and moving with only 1 point of risk...you would look to pull the trigger, and look for the 1-1/4 point, or more. You could also try to incorporate the MA strategy into this trade because of the magic numbers and the momentum was growing. And don't forget the previous gaps we looked at this morning on the 15-min. chart...gaps get filled sooner or later.

If you take the high of the first hour and add 3 -- 4 points to extend the range, it gave you some room to take a trade at the high of the day...as I mentioned in the workshop this morning...Remember it's high risk trading at the high or low of the day? We needed that extended range to give us the confidence and momentum rules.

One more thought...anyone contemplate being a Contrarian late in the day? A quad top + and the move below the MA.

Your thoughts...

Marsh