SPI 7th November 2007 part 2


SPI 10:14 am

Higher open on SPI due to %rate news, and it’s where traders would have exited their longs yesterday. (bummer)

Today:- Expectation that the gap on the downside would close, or move into a 44 point move down, this aligns with upper resistance of the weekly 50% level @ 6716…

A gap completion down, doesn’t support Buying, it confirms rotation back down in ‘gap’ closure where day-traders partial exit on 44 points down with the expectation that gap will close…..

Partial exits on 22 points from swing highs @ 6698, and move to breakeven stops from entry or above todays highs with gap ‘closure’ expectancy…..stops above highs should move any 'shorts' to breakeven $dollar return if stopped out....
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SPI 7th November 2007


8:35am

%Rate new out this morning and it will probably open nowhere near sycom close, as show in the chart above.

Yesterday was part of the 2-day rotation upwards with the expectation of the market moving back towards 6699, and by looking at the pivots above 6709, the market looks to be heading upwards into that level.

There are no 'new' positions on the SPI today, as they were stopped out at breakeven yesterday.


Day traders:- Risk 6656

#1. Hard call today because of where the market opens, a bullish day would see the market push back down in '6656-gap' and be supported, before it moves higher into the close.

#2 Keep in mind, that the best trades in rising markets are from lower 44 point 'spiral points', or using the previous high as support. If it's going to be from a 44 point low then price will be back under 6656, so it needs to move back above risk to confirm intra-day support

#3 market rallies upward on open and completes the 44 point move into the higher pivot, if that's the case there could be a possibility of a rotation back down into the gap @ 6656 later in the day, because of price trading below the weekly 50% level and a 3-day 'sell-cycle'

Today's open doesn't have any clear trades for position or swing traders...


Technically:- a bullish 2nd day UP rotation would need to close above Monday's highs to swing the cycle from a 'sell' and into a BUY cycle.

I'd be surprised to see major weakness today, but any rotation down would be back towards Monday's lows based on weekly trend and 3-day 'sell' cycle....

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US report 6th Nov Part 2


Higher timeframes supporting the market, with this week having an UP bias as it tries an rotate back towards the weekly 50% levels after verifying major 'Support'

Technically the higher timeframe trends remain supported, but short-term the trends and cycles are weak:- they are both trading below Weekly 50% levels and in 3-day 'sell' cycles.

However, the expectation remains 'choppy' days with an UP bias off support....


US report continues......
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Tuesday ended up a choppy and rotating day trading between both 'Dilernia pivots'

The important part of this price action was the early rise upwards and then the rotation back down into the lows. Because that price action changed the intra-day cycle around early in the day, tested the cycle lows intra-day and bounced....
At this stage the view is that this trailing (white) line will be the support line for the rest of this week in both markets as they rotate upwards with an UP bias this week..


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US Index Report 6th November 2007


DOW & ES minis...

US markets currently supported around their higher timeframe 50% levels, both Quarterly and November

Weekly Support: - November 50% levels. DOW 13490 & ES 1493

US report continues below.....
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Expectation that these levels will support price, and that this week will be a similar as the previous UP week. Choppy with an expectation of a rotation back towards the 50% levels in both markets.

Weekly 50% levels rotation zones @ DOW 50% level 13754 & ES 1528.75


US report contines below....
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Monday trading below Risk levels and pushed down, same price action as two weeks ago.

Tuesday:- Risk levels on both markets
DOW Support 13565

ES-minis 1505.75 support

A bullish swing would remain above the breakout zones....

A choppy day will see a 95 point move on the DOW upwards before reversing back down and into support (13565).....same applies on the ES into another rotating choppy day...
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GBP/USD 6th November Part 3


GBP/USD:-

Higher Weekly open and expectation of a 2-day reversal in the market. Ideally back towards the 3-day lows @ 2.0670

Yesterday's trade confirmed with the break of the trailing support line @ 2.0835, with the first partial exit on the 90 pip low.

As we can see there has been some buying support come in around this low, however the trailing resistance line is now 2.0815. This trailing resistance line should hopefully send the market down towards the 3-day lows, as part of the 2-day rotation back down.

Traders can run trailing stops above the line or breakeven stops from the previous break (entry price)
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SPI 6th November part 3


11:20am

Day traders:- exit zone 6660

Swing Traders:- exit zone 6699 (breakeven stop from entry)

Position traders:- exit zone 6699 (breakeven stops from entry/ hold overnight)
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SPI 6th November part 2


10:25am

SPI- 2-day reversal as it rises upwards from 6617...

Partial Exit at R44 highs @ 6660...

Day-traders partial exit @23 point range highs which match the pivot @ 6643 with the expectation that a rise upwards from 6617 will move 44 points

Breakeven stops from entry below 6617..

Risk 6617
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