This is an EXAMPLE of our Long Term Trading
Parameters
Long Term Trading Parameters
For June 23
, 2005
(Provided to you in advance of the Trading Session)
Summary:
Warning: Market declines
could begin without an official test of 1224 in the
S&P.
The longer term chart of the S&P is suggesting
that the Markets are very capable of beginning a decline
from current levels without having official tests of
longer term resistance (1224) occur beforehand.
This is a clear warning that, if the Market begins to
slide from here, momentum driven selling pressure could
easily follow. Be warned: DECLINES SEEM
LIKELY SOON SO LONG AS 1224 REMAINS IN TACT AS RESISTANCE.
| Initial long term trading parameters
for the NASDAQ exist between 2000 - 2100 |
| If 2000 breaks lower expect 1900 |
| If 2100 breaks higher expect
2190 |
| Otherwise expect 2000 - 2100 to hold |
These Parameters are telling us to trade the
Market as follows...
If 2100 is tested first, these charts tell us to short
with a downside target of 2000. However, if 2100 breaks
higher these same Parameters are telling us to expect
2190
But, if 2000 is tested , these same Parameters tell
us to buy the Market with a target of 2100. However,
if 2000 breaks lower, these same Parameters are telling
us to expect 1900
IMPORTANT: The rules of trading say that a test
of support or resistance Parameters occur in the NASDAQ
when the NASDAQ comes within 3 points of our trading
Parameter (15 points for the DOW and 1.5 points for
the S&P). When, for example, the Market comes within
3 points of a support level, and, according to rule,
we look for a long position, we would refer to the Focus
List at that exact time to find which stocks are best
to trade. In order to work efficiently for Market-timing
purposes, we must look for trading ideas at the exact
time the Market offers us trading signals. |
