Tuesday (Main Trend: UP )$$$
we mentioned before Monday's close, at globex, stop 1345-6,
buying bias, for 8-10 pts rally. If
it can not hit 1357-9 at globex and it opens at 1351-2; market
could rally top 1357-9 before a little profit taking sell-off. Once
the target gets hit, ready to reverse to long for continuation
of the rally -- most likely after 10:00-11:00.
Monday (Main Trend: Dow - Turning up )$$$
could rally to 1348-9 at globex and plunge at open and
test 1336. If it opens gap up above 1345, try stop 1349.70,
selling bias for one more time, target 1336 before 8:30. If SP
can not take out 1344 at Globex, it should be choppy and weak
Friday (Main Trend: Final stage of short-term correction
Updated after GDP, GDP is
stronger than expected. Market should have a profit taking
sell off at open. Stop 1361, try selling bias at open for
9:00am update: stop 61, selling bias, target 1341. DMD12:00
update: stop 1349, selling bias, take 1/2 profit at
1340-42, low 1336 will be taken out; reverse at 1332 for
Thursday (Main Trend: Final stage of short-term correction
Dow should plunge big time to
below 10,000 on
Thursday. At gobex,
try 1363.80 stop, scalp buying, target 1369.50. If
it opens gap up @1374, stop 1377, selling bias, for at least
10 pts profit. At
open, stop 1370, sell @1367-9, target 1352 within 2 hours.
Afternoon: stop 1348-9 stop, selling bias, sell @1347, target
1340. Stop 1344.20, selling bias, target 1 tick above
limit down. Market should reverse within 4 hours after 11:30.
Wednesday (Main Trend: Final stage of short-term correction
5:00PM PST, if 1346 holds at globex, buying
target gets hit, get ready to reverse to short (selling bias).
it opens flat at open.
Tuesday (Main Trend: Final stage of short-term correction
looks like not low enough. Dow is going to
make the final plunge in next 3-4 days.
Friday's Nasdaq close was a key reversal. So, it is
still risky to take long term long position aggressively. In
next 3-4 days, there could be a one-day bounce, but, Dow's
plunge to below 10000 is still valid. In next 3-4 days,
scenarios: (1) consolidate at Friday's bottom area and
reverse, (2) keep plunging and reverse on weekend. Keep
in mind: Friday's Nasdaq close was a key reversal otherwise
Friday's low and this Tuesday's bounce could be the 1st leg of double bottom (very
Friday (Main Trend: Giving
up up-swing setup;
more down side for dow )$$
On Thursday, we gave market one
last chance for rallying and market failed. We exited our long
position at around 11:00PM PST breakeven. Dow Jones
looks like not low enough. In next 3-4 days, Dow is going to
make the final plunge to as low as 9800. There won't be any
rally in next 3-4 days with 1 possible sideway day. (DMD update at open:
This open is in the middle; otherwise, stop 1393, selling
bias, target 1372, 1348-50. 10:40PM update, stop 1372.20,
selling bias, target 1362. 1:40PM update, stop 1362.70,
selling bias, target 1 pt above limit down.)
Thursday (Main Trend: Reversing
At globex, it should test 1398. For day session: Trading range
1309-1401 within 3 hours after the open. If PPI report is
neutral and the opening is not a gap down, it should be
buying bias at 1390 for 1400 (or 1410) target then reverse to short
for 1395 testing at 10:00-11:00, then reverse to buy side for
(DMD update at open: stop 1403.5-04, selling bias, target
Wednesday (Main Trend: Reversing
Wild card target, 1390. Support
1401 could be tested within 2 hours after the opening. Even
though 1401 could be tested, it is risky to sell short. For
secondary entry, stop 1400, buying bias, target
for Globex, 1406, buying bias, target 1416 (or 1426). Exact
stop for day session will be available after the opening.
(DMD update at open: Dow should be down 100-120, 150 pts
today; should be a down day; but ND is holding, otherwise a
good selling bias and day high should be in already. SA - side
line and wait for PPI.)
Tuesday (Main Trend: Down-swing,
ready to reverse for up-swing )
Globex stop 1394.20, buying bias for gap up open. (Just risk
0.50-0.80 and don't insist..) at globex, cuz, it is a selling bias after gap up
open.) Although it
might gap up open, market should drop after open like Monday.
Selling bias. Trading range 1404-1394. If there is not support
at range low, market should close at 138x (the low).
Monday (Main Trend: down-swing )
valid before 02/16 Wednesday noon. Stop 1404.50, Selling bias
at open, target 1388 testing then reverse.
Friday (Main Trend: down-swing )
Selling at open
Thursday (Main Trend: Mixed )
1415 should hold for globex (before the open) followed by a
bounce for a gap up open. Globex,
stop 1414.50, buying bias, target gap up opent; then reverse
back to short. After 1409-10 bottom, reverse to long.
Wednesday (Main Trend: this up-swing should be over soon. )
market stays at the same level at 1448-9 (or below 53) before the
opening, it should be for selling bias at open, target
1433-30, daily close 1434-6. We
are expecting for a big down day on Wednesday. DMD
11:00 update, stop 1435-6, selling bias target 1422. DMD 12:40
update, stop 1426, selling bias, target 1415 at globex.
Tuesday (Main Trend: this up-swing should be over soon. )
At globex, try stop 1425, buying bias, target 1338-39. (or
opening gap up)
Monday (Main Trend: this up-swing should be over soon. )
buying bias, target 1337 first then 1447-9 testing and close
at 1442 area. If this 1447 testing fails and closing above
1442 fails, topping should be confirmed and this week sould be
a down week. Update after open: Stop 1433, selling bias,
target 1420-19; day trading, stop 1419-20, buying bias, target
for gap up open @1435-7.
Friday (Main Trend: Swings up )
Update after open: Stop
1344-45, selling bias, target 37 first. Afternoon update: Stop
1345, selling bias, target 1430-28, and close should be at
Thursday (Main Trend: Swings up )
short term rally is not over yet, but Wednesday's reversal
triggered the possibility of a PB to 1403 (spike 1388, less
likely). If it opens gap up at 23-24, a profit taking sell off then
tests 1429 and if it fails to take out 1429.50, then 1429.5
stop, selling bias, target test globex low. On Wednesday
1428-32 target got hit and market reversed. Watch out, market
could plunge to 1400 (spike 1388, less likely) again and
reverse back up for 1448 target .
Wednesday (Main Trend: Swings up )
be a day for profit-taking sell-off after open (target
1406-1408.50) and reversing back up to test high 1 hour before
FOMC announcement. After rate hike announcement, market
should plunge to test morning's low which could be a good
opportunity to re-enter the long for more up-swing rally
before weekend. The target for a profit-taking sell-off
after open is 1406-08; then reverse to long. Exactly
stop levels will be available after open.
Tuesday (Main Trend: Swings up)
Target for this
leg up is 1428-32. Trading range for the rest of the week, Without
FOMC scenario, stop 1397.30, buying bias (including
globex), target 1408-11 or 1418-21 (most likely); then
see if it is feasible to reverse to short side for scalping.
Monday (Main Trend: Swings up )
points trading range for bottom, carefully buy bottom for
bounce, from 1355-1362, target 1385-90; then reverse to short
for 1355-62 target before Wednesday noon. Stop is around
1357.40 for buying bias. For sell side, the only less risky
level is 1385-90.
Due to the strong
GDP, market skipped the 1438 target and plunged.
Monday-Wednesday will be for a trading range of 1385-90 bounce
target and 1360-55 testing. If this bottom holds, market
should creep back to 1438-42 -- the missing number due to the
strong GDP, before 02/10/2000.
Friday (Main Trend: Swings )
a rally fails again on Friday, then there might not be any big
move before FOMC and month-end could close down. (most likely
1410-12 for monthly close.) Update
after GDP: GDP
# is stronger than expected, market plunged to 1380 in just 45
seconds. Side line now. This 1396 is the pivot.