Tradethedowjones's Weblog

The Best Trading Strategy

tradethedowjones — Thu, 24 Mar 2011 13:31:48 +0000

I have been a client and now good friend of Julie since August 2009 when I was introduced to Trading By Numbers by my good friend Colin who had come across Julie and her trading strategy a few months earlier. I am a bit biased now of course but that does not stretch to being dishonest about what I have achieved using the Trading By Numbers trading strategy nor about the level of service provided by Julie. My name is Karen by the way and I am assisting Julie during her downtime and just keeping her inbox clear of enquiries.

Trading By Numbers is a complete trading strategy devised around the use of a very clever and well thought out approach to trading using a trading equation and a simple structured approach to decision making that I have yet to find shared on the internet. The trading technique does not make you rich overnight (does any trading system) in fact it does take quite a leap of faith before people can use Trading By Numbers to their advantage. It is a simple strategy driven by a set of rules and trading principles and its roots are in price action and understanding it. I made a complete hash of things for around 3 months until I just accepted what the markets did and gave into it. A remarkable transformation happened when I ditched all my old trading baggage and just followed Julie’s Daily Advice and then studied her after hours summary of events.

Julie is now on a break for around 3 months for reasons I will not go into here but she has granted me permission to see whether there is a wider interest in this brilliant trading strategy (Colin may be helping too) as I have pestered her for more than a year to do something about taking Trading By Numbers to a wider audience (and I know that some of her exisiting clients have too). It was only recently that she mentioned she did try and set up a simple blog a few years ago but then it stopped working………………. so with a bit of digging around in her records I have managed to find the login details and to my surprise, what was set up by Julie is still here but now considerably out of date.

Julie is still a huge fan of the Dow Jones Daily Cash Index but as her clients got on board with the trading techniques Julie offered she expanded her daily advice outputs to include Crude Oil and she also trades Italy 40 Daily Cash Index and Forex. I personally find the Itailian Index too much of a handful as it is very volatile but Colin has managed some great massive trades on the index and he too has become a fan (can’t drag him away from it most mornings).

Trading By Numbers is probably the best thought out trading strategy I have ever come across and I have experienced a number of different systems in my quest to be able to trade the markets. My quest has taken me longer than I imagined and I am 100% sure that without finding Trading By Numbers and Julie I would still be grappling with all that other stuff sold on the internet. So Colin who introduced me to Julie is a trading buddy although to be fair we do just get on with our trading and have a catch up each day.

I have yet to conclude my discussions with Julie about what I can say on this blog but she is fairly open to allowing me a fairly free reign………she is a very reluctant marketer by the way and dislikes all the hype that seems to go hand in hand with internet marketing. She describes herself as a trader first and foremost………but she also says that she did not become a trader overnight and neither should anyone expect to be able to achieve this (you would be an exceptional person if you did). She is not into a flash, splash the cash lifestyle either. She can educate anyone in the workings of the markets. Her knowledge of the markets is extensive and very impressive.

Just before she took her enforced break she did tell one of her long standing clients:

“I do think Trading By Numbers is a bit special…….I do not routinely check out what is out there on the net but I am aware that most of it is shockingly bad, it is peddled by marketers who who not know an Elliott Wave from a Fibonacci Percentage. In my experience you have to know all there is to know before you can wrestle out what actually works and then pass it on with any authority”

I am going to end this initial post of mine just by stating a few facts:

Trading By Numbers has operated as a service for around 3 and a half years (an impeccable privately operated service)

It teaches you how to understand price action behaviour and there is not a technical indicator in sight or in use

It teaches you how to recognise when the market will rise…….when it will decline

It utilises some of the best trading techniques I have ever experienced

My own daily trading target is 50 pips during the morning and 50 pips later in the day

Hardly a day goes by when I don’t exceed my target as there is generally much more on offer

It is suitable for full time traders or those just strating out with jobs to hold down

It is not the Holy Grail but in my view it does come as close as it gets

I will post again when I have had further discussion with Julie (she is still dragging her heels)………I really want her to make Trading By Numbers available to a global audience. It deserves a place on a much bigger stage so that more people can benefit and actually start making money in the financial markets.

I want to persuade Julie to have a website offering the Trading By Numbers Strategy for sale and who knows also offering Daily Advice to a mass audience.

Anyone intertested in learning more should add a comment expressing their interest.

Please note any comments that are rude or abusive will be deleted.

All The Best

Karen

PS: I’ll get Colin to say a few words next time. He is what I describe as a trader who has taken Trading By Numbers to his heart and his outcomes to a higher place than I have so far. But then he has been at it longer than me.

Pivot Point Trading On 11 April Dow Cash Index

tradethedowjones — Sun, 13 Apr 2008 11:30:41 +0000

Hi Everyone,

It would seem that unless something is glossy and making all sorts of outrageous claims of overnight riches it just does not cut it on the Internet !!! I’ve been posting my reports for a while now and I have attracted some readers buy no one has left a comment nor asked any questions which puzzles me greatly. My system is solid, my trading approach works day in day out as long as The Dow Cash Index moves and it does not rely on any form of technical anlaysis. Can it bring you the riches you desire…………….with a consistent application of the rules/system yes it can and an income for life. Am I motivated by money, not really but I do have clients who are. Money is only a problem when you don’t have any !!! Not everything that glitters is golden !!! Sorry I don’t have pictures of me getting into my helicopter nor leaning against one of many supercars on my drive. Not everyone is into all of that, some people prefer to live a modest lifestyle and give to others and do other things to grow their spoils.Before The Opening Bell

Much happened mid morning during the the European session with General Electric reporting a poor profit of 6% a KEY company and struggling.Not helped either by GE cutting its forecast for the remainder of 2008.Shares of GE fell 10% in premarket trading.

Genentech Inc also missed its earnings target and was downgarded

At 1.30pm the Import Price Index came in with an increase in prices and at their highest since November 2007 (fuelled by the high oil price………forgive the pun !!).

Consumer Sentiment was due at 3pm.

SW Report

UP level is 12665

DN level is 12450

Watch 12650 for direction. A strong breakout is forming one way or another.

The Dow (Wall Street Daily Cash Index) at 2.30pm

Open 12454

High 12467

Low 12438

Initial Signal Rule 5 SELL

Signal Confirmed YES

Signal Changed NO

3pm Index At:12461

Comments:There was an attempt by the index to make some progress up helped by S1 being breached during the early movement but the index was struggling to shrug off the downward pressure and I had a test of 12400 in mind from the off really.12400 would likely put up a bit of a fight before caving in if it was to cave in (time would tell).Consumer Sentiment figures came in at 3pm and registered its lowest reading since 1982.

Choices:The 3pm price at around 12360 was a great entry down to the test at 12400 initially where you might have opted to take profits or stick with it to wait to see if the BRN gave way. I was in here and out at 3.09 at 12410 for a quick 50 points on the board.I later entered SHORT again at 12466 at around 3.50pm as the index had made no real progress UP there was no change of signal approaching 12400 (just a normal retracement back away from it).The target was still 12400 as that level had still not given way but I considered it to be just a matter of time and we would see the break.

CheckPoint At 4.30pm

Index Trading at:12432

High 12467

Low 12405 at 3.11pm

Developments:The index had been down to test the BRN at 12400 but had not successfully broken through it. It was putting up a good fight as you might expect.On its retracement the index had hung around the 12450 level and made little progress away from this level.

Comments: There were opportunties to get in at around 12450 and a little higher at around 3.50pm until 4pm where you could have pegged your SL comfortably at 31 to 33 and been safe in the knowledge that the index had not been higher than 12467 today.

The Dow (Wall Street Daily Cash Index) at 6pm

Index trading at:12408

High 12467

Low 12396

Developments:The breach of the BRN had happened at 5.30pm with a dip down to 12396.The index had also travelled back up to 12448 at 5pm which had you not already been in on a SELL trade was yet another excellent opportunity to get in initially down to the BRN but if it was breached then the S2 level was the target for profit.

Comments:Any SELL trade entered earlier or at around 5pm was now on target for a potential move down to S2 at 12320.If trading the early session and not involved in a SELL trade before this point you need to ask yourself what you are seeing to prevent you getting into the index.

Additional Comments:It was possible given what had happened during the early session to use 12408 as your entry at around 6pm but you may have wanted to peg your SL a little wider to12450 just in case of a later retracement.The index was brewing up very nicely for a BIG move and continuance down. If already in a SELL situation you would just go with the flow and enjoy the ride down.The low was still 12396 at this point.

At 6.30pm the index was at 12391 this was a lower low and a good entry if already not involved in a SELL trade.The lower low telling you the index is likely to continue down and the potential target now at S2 at 12320.

At 7pm the index was now lower at 12378 and there had been lower lows the lowest at 6.55pm at 12368.There was no evidence of other than very mild pullbacks of a few points and so a good retracement was unlikely such was the SELLING pressure.And so if still not involved this was a good entry point for your SELL pegged to the 12400 level as the index had not been above here since 6pm now and lows had got lower.And no need to exit any sell trade placed earlier in the session even if tempted by the number of points profit talllying on the board (unless of course you were content to take them).

At 7.30pm the index lower at 12352 with a lower low at 12340 at 7.16pm and still heading lower. If still wondering what to do you would now strat to need recognising the time and just how far the index had travelled down today and so you would be looking for any signs of a retracement higher to give you a entry.

At 8pm the index was at 12348 and had been higher at 12366 at 7.54pm but that appeared to be it as it was heading south and not really looking back.Entry now was difficult as risk versus reward was tricky as S2 lay ahead at 12320 and was the target also with an eye on 12300 too.

At 8.30pm the index was at 12343 and the index had been lower at 12326 at 8.14pm where you may have taken profits OR elected to wait for a possible test of the BRN at 12300. I took profits at 12318 as I was going out and I did not want to pre-empt what might happen at 12300 should the index get there.

The index did get within a whisker of 12300 reaching 12304 by 8.47pm and then it rose into the close and closed just above its S2 level at 12325 where it settled at 9pm.

And so the breakthrough came today and the index broke free of the range (12500 to 12600/700) that has persisted all week making for some tricky sessions. It was helped down by the poor earnings results and outlook for 2008 provided by General Electric.And with earnings season strating in earnest on Monday 14 April this could just be the start of lots of good BIG moves.

Ist Quarter Earnings Reports From 14 April For Two Weeks(ish).

You have already had evidence via the results today, particularly those from General Electric, just how sensitive the market is to earnings being missed and or downgrades of companies that have performed poorly. To some extent when energy prices have been high, consumer spending flat, unemployment figures high etc., etc.,I don’t expect companies to do well and yet it would seem the market does !!! The opposite of course happens when big bellweather companies hit or exceed their earnings estimates.Wall Street celebrates and goes over the top.So moving forward we need to be vigilant to what is happening as poor results from one company and good results from another can have the index moving down and up with big swings.

So in terms of your preparation for trading from Monday spend a little more time getting a handle on what companies are reporting earnings and when.Those reporting before the opening bell will bring on a reaction during the European trading session which can carry over into the US session from 2.30pm. Those reporting after the market closes can be ignored and picked up on when preparing for the next days trading. It is those that are reporting during the US session that cause the most difficulty and it can be difficult getting a handle on when the news will come so care is needed. Make sure you read the Market Watch report on the homepage everyday before trading and note any companies that are reporting and when. If you are not clear what companies make up the Dow Index then google it and familiarise yourself with their names.Also bear in mind that NasDaq companies and those belonging to the S&P 500 will also have an impact on The Dow Index too.The market wants to see whether BIG companies have weathered the economic storms. General Electric did not manage it but don’t assume they will all have missed their targets !!!

Don’t worry too much about this just do your preparation and you will be fine. If things are not clear I shift my trading efforts to the evening session on The Dow from 6pm onwards as companies have either reported by this time or they will not report until after the market closes.

Just continue to follow the numbers.

Julie

Pivot Point Trading The Dow (indu/dji) on 9 April

tradethedowjones — Wed, 09 Apr 2008 22:31:10 +0000

Before The Opening Bell On 9 April

UPS had issued a profit warning reinforcing the gloomy economy.

Citi Group were selling $12bn debt to various companies willing to take it on board.

Mortgage Applications and refinancing agreements had risen last week.

Boeing had reported a 6 month delay to the 787 Dreamliner.

Honeywell had won a large jet engine contract.

Bernanke due to speak at 2.30pm.

Wholesale Inventories due out at 3pm.

Crude Oil Inventories due at 3.30pm.

SW Report

UP level is 12750

DN level is 12500

Watch 12625 UP and 12500 DOWN

The Dow (Wall Street Daily Cash Index) at 2.30pm

Open 12597

High 12618

Low 12559

Initial Signal Rule 3 BUY

Signal Confirmed NO

Signal Changed YES Rule 7

3pm Index At:12566

Comments: The breach of the PP was a late one occuring at 2.55pm and only by one point but that still rendered it a Rule 7.A breach is a breach if only by one point. I did not see any commentary about what Bernanke had said today and neither did I find the outcome of the Wholesale Inventories at 3pm either !!! Still with a Rule 7 there is the small matter of waiting for the index to confirm its initial directional bias. It did look to be showing an inclination to the downside and lower lows would confirm that. These came at 3.01pm to 3.06pm bringing the index down to 12553.

Choices: I decided I wanted to see the move down develop and tackle the 12500 level before taking a trade on and this proved to be a bad decison today. At 3.23pm the index was back above its PP at 12572 and this provided a good entry for a SELL trade down to the 12500 level initially. It was later back at 12563 at 4.01pm another good entry point for a SELL down to 12500 too.

CheckPoint At 4.30pm

Index Trading at:12528

High 12618

Low 12521 at 4.28pm

Developments: The index was getting closer to the 12500 level but there was still no breach. The breach came at 4.37pm. If still in a sell trade your target would now be the S1 level at 12456.

Comments: At this point I decided I would wait for a later retrace to or around the PP at 12560 where I planned to SELL. Another bad decision as things turned out !!!

The Dow (Wall Street Daily Cash Index) at 6pm

Index trading at: 12482

High 12618

Low 12479 at 5.57pm

Developments:Index still looking on target to get close to its S1 level. At this point too close to its lows to SELL and a retracement later might provide a good entry level. I was still planning on getting in at or close to the PP fully expecting a last rise to it before a decline away from it and down. If comfortable trading against the main trend of the day a BUY here would have had some mileage but the downside is that the trade can be curbed by not being able to be certian about how far back up the index will travel.You’d have had to have pegged your SL to perhaps the S1 level too.

At 6.30pm the index was at 12497 and was making heavy weather of getting back above the 12500 level.

At 7pm the index had made it above 12521 and I expected it to go further towards the PP.

At 7.30pm the index was back down at 12486.

At 8pm and with time marching on the index was at 12480 and I was mindful now that this full retrace to the PP was becoming more unlikely.There was a slightly lower low at 8.01pm but only to 12479.

By about 8.13pm with no further progress down any SELL trade still on should have been closed to protect profits.

At 8.30pm I had abandonned any thoughts of getting a trade today. The index did get back up to 12536 at 8.43pm but was rising into the close. The index eventually settled at 12527 at 9pm.

I was caught out today by perhaps expecting too much of the index and not taking what was on offer earlier. Will today cause me to re-examine my trading approach in future…………..no. My approach pans out very well most of the time so I just put today’s experience down to having too high an expectation of the index and the break of the 12500 level did not prove that significant. I readily accept that the index may not do everything you expect it to do.

Julie

Pivot Point Trading On Friday 4 April

tradethedowjones — Sun, 06 Apr 2008 13:20:22 +0000

Before The Opening Bell

IBM had been cleared again for contracts in US.

Economic data very thin on the ground today but crucially Non Farm Payrolls data would likely help fill the gap with the numbers likely to prove once and for all to see that the US in in recession. Have mentioned a few times how bad news can be viewed as good, so traders are hoping for figures that are NOT as bad as they expect.This could just prove to be the catalyst/excuse needed to move the market up to higher ground.Of course if they are worse than feared it will be a trip down for the index initially.

We really need to see a breakout below at 12500 or at the top a break above 12700 to release the index from the boundaries it has observed all week so far.

SW Report

UP level is 12750

DN level is 12500

Watch 12500 for early signs of weakness.

The Dow (Wall Street Daily Cash Index) at 2.30pm

Open 12635

High 12636

Low 12572

Initial Signal Rule 3 BUY

Signal Confirmed NO

Signal Changed YES PP Breach Rule 7

3pm Index At:12594

Comments: With a Rule 7 situation it is often the case that some sitting on hands is needed while the index establishes its intial directional bias.Based upon the first 30 minutes it was looking as though it would be down initially. The down move would provide clues as to whether the BRN at 12500 would continue to hold or whether we could get further beneath it. If the index did not breach this level and given that the 12600 level and PP at 12605 was already a feature of the movement then we could be in for an eventful day.For the initial directional bias to be confirmed you would be looking for either a lower low beneath 12572 or a higher high above 12636.

Choices:A lower lower came around at 3.07pm at 12571 and you could have entered a SELL here pegging your SL to the PP at 12605 (also mindful that there was a high above here too) and a Rule 7 does snap back on itself after its initial move UP or DOWN.So if you have made your move you would have to stay vigilant.Your target for profit and exit would be 12500.

Additional Comments:The index had made progress down but the fall had become unconvincing fading at 12550 and then making it down to 12531 before rising again. You’d have exited your SELL trade around the low or 12550 as an end of move for now (this was happening at around 3.30pm(ish) to 3.40pm. Had your remembered the characteristics of a Rule 7 you’d have considered a BUY trade back to the PP at 12605.

CheckPoint At 4.30pm

Index Trading at: 12618

High 12636

Low 12531

Developments:The index now back above 12600 and the PP at 12605 and holding.Worth sticking with this if you were already in a BUY trade particularly if the index continued to trade around 12600(ish) and above as the index may have a go at the 12700 level before making a later decline towards its lower levels beneath the PP and 12600 level (which it would).

Comments: At this stage it was worth monitoring the advance and to start thinking about a SELL trade if the index failed to reach/breach the BRN at 12700. This is a Rule 7 and there are opportunities to BUY at the lows and SELL at the highs throughout the session.The high above the PP is a pull and the low beneath the PP is a pull on the index.

The Dow (Wall Street Daily Cash Index) at 6pm

Index trading at: 12673

High (higher) 12674 (at 5.58pm)

Low (still) 12531

Developments: Much higher now but still no convincing attack of the 12700 level.This level presented a great opportunity to SELL down to at least the PP at 12605 but knowing what you know about a Rule 7 you could expect a fall below the 12600 too.A realistic target for profit and exit would be around the 12550 level (around the level the index faded before).Your SL could have been pegged to the BRN at 12700.And you may also get a further opportunity to BUY at the end of the decline which you would have in mind already (well you should have).

At 6.30pm the index was at a new high at 12684 but was not heading UP and was fading with the influence of the BRN at 12700.It was well outside of the timeframe for exercising a mental stop loss, we were only about 11 points above entry level here and your actual SL was at 12700 and so everything was perfectly safe. I know that some of you panic when the index moves above your entry (even though your trade went into a slight profit at the point you placed it and so no implementation of mental stop loss was required). Remember your position you are trading SELL on the basis that the index will not get to 12700.

At 7pm the index was backing off its highs and was at 12671. Also a great entry point for a SELL trade as you could comfortably peg your SL to 12700.And you could expect the index to get down to at least 12605 the PP or more realistically beneath the 12600 level.

At 7.30pm the index was down at 12630 and you would stick with it down even if there was a retracement back up.The index rarely travels UP nor DOWN in a straight line yet I know from seeing your trades that there is a tendency to panic when the index comes back on itself and negates some of your profitable position.This panic makes you doubt that that you made the right decision and you then you tend to get out of your trade on the pullback (the worst possible place, as you have allowed the pulback to erase your profits).Your only concern would be that there was no higher high above 12684 which given the time there would probably NOT be.I cannot give you courage just information and trading know how.

At 8pm the index had pulled back/retraced to 12654 and was gearing up for its decline to at least the PP (but probably lower). This was also a great entry for a SELL trade NOW perhaps using the high for SL purposes at 12684.

At 8.30pm the index was at 12618 and you had options to either come out here or hang on and wait for the full decline to play out.

The index declined to 12577 at 8.47pm where you’d have come out if not already out. The index rose a little into the close and settled yet again above the 12600 level at 12609 (marginally above its pivot point).

Julie

Trading The Dow Index Thursday 3 April

tradethedowjones — Fri, 04 Apr 2008 09:45:04 +0000

Hi Everyone,

A bit of a non event today and a little tricky to negotiate in the later session.

Before The Opening Bell

There had been a sizeable jump in unemployment claims and they were now the highest since September 2005.

Cisco had been downgrade. Research In Motion (the makers of BlackBerry) were reporting good results.

Oil was back above $100 a barrel and the USD was weakening under the strain of the employment data.

Bernanke was speaking again at 3pm and the Non Manufacturing Index was also due at the same time.

SW Report

UP level is 12750

DN level is None

Watch 12600. Plus of interest 12800 needed for sustainable advance.

The Dow (Wall Street Daily Cash Index) at 2.30pm

Open 12551

High 12574

Low 12532

Initial Signal Rule 4 SELL

Signal Confirmed YES

Signal Changed NO

3pm Index At: 12562

Comments: A steady open with action below the 12600 level and the PP which is what you would expect based upon the potential SELL signal. Nothing happened to alter that signal and it was therefore confirmed at 3pm.You may have wanted to just sit on your hands a while until the Manufacturing Data was released. Bernanke would likely be using the same words he used yesterday so that would be old news, nevertheless best to wait and see.Manufacturing Data was healthier than anticipated and so the initial reaction to it caused a spike up providing a great entry point for a SELL as long as it did not continue to rise. Given that good news has been in short supply and that it had brought the 12600 level into play the SELL trade could well be curbed by it.

Choices: An entry at around 12606 was available at 3.07pm but an entry at or around the 12600 level was also good. Your target for exit was 12500. You would be looking for a lower low beneath the low of the day so far of 12532 to provide the possibility of the 12500 level being reached.

CheckPoint At 4.30pm

Index Trading at:12572

High (higher) 12606

Low (still) 12532

Developments: The index had made progress down since 3pm but had not reached the low of the day so far and had posted two higher lows, one at 4pm and a further one at 4.28pm. If keeping half hourly checks on your trades the higher lows were a warning and you may have exited your trade then. Had you not picked up on the higher lows it was now time to come out and take profits and await further developments.

Comments: When things change on the index you do have to accept that your original decision and target for exit may just not be possible. It is important to react to the changes rather than start employing wishful thinking. The 12600 level would now likely be a feature moving forward and there could be a signal change looming at that level.At this stage it was too early to make that decision and not a good time to start speculating and placing trades.If at any point you are unsure about what has happened or what is developing then it is probably prudent to come out and allow the movement to unfold so that you can make a decision.

The Dow (Wall Street Daily Cash Index) at 6pm

Index trading at:12640

High (higher) 12648 at 5.50pm

Low (still) 12532

Developments: The index had made a convincing move above the 12600 level and a further higher low at around 5.30pm (at 12577). The signal had changed at the 12600 level to BUY and the index was now struggling for direction. A reasonable amount of volatility had set in. This was possibly due to The Bear Stearns Post Mortem but could equally have just been as a result of the indecision of traders/market makers.

Comments:Little to invite you into a BUY trade at this point unless already in at around the 12600 level a little after 5pm.If you were in a BUY trade you would want to get ready to get out and leave the index to its gyrations.

At 6.30pm the index was still very choppy but had presented an opportunity to take a decent profit from your BUY trade at around 6.19pm when it had risen to around 12671.

Having seen the continuing choppiness it was best to leave the index alone for the rest of the session rather than try and get in and get stuck in a trade possibly going nowhere.

At 7pm the index was back down at 12626. No new high.

At 7.30pm the index was back up to 12641. No new developments.

At 8pm the index was at 12655. Again no new developments.

At 8.30pm the index was at 12621. It closed a few points higher and settled at 12626 at 9pm.

A very tricky late session that should have been left to its own devices and time spent trying to navigate the twists and turns was probably not worth the time nor effort.The index made no progress one way or another neither reaching 12500 nor 12700 with 12600 mixing up the action mid session. It has once again though closed above 12600 whilst it contemplates its next move. A break one way or another is coming, I can feel it in my water.

The Dow Summary IRO of Friday will be issued on Sunday at some point as usual.

Julie

Pivot Point Trading On The Dow On 2 April

tradethedowjones — Thu, 03 Apr 2008 13:02:32 +0000

Before The Opening Bell

Private Sector Employment Data showed a slight rise in hiring.

Best Buy Retailer was being optimistic about results.

Crude Oil prices were back to $100 a barel pending inventories to be reported at 3.30pm.

Gold had taken a hammering assisted by some strength in the USD.

The had been a drop in weekly mortgage applications.

US Factory Orders Data was due at 3pm.

Bernanke was delivering a speech commencing at 2.30pm (always a potential market mover).

SW Report

UP level is 12700

DN level is None

Watch 12625 and ST Range from 12590 to 12650

The Dow (Wall Street Daily Cash Index) at 2.30pm

Open 12644

High 12651

Low 12395

Initial Signal Rule 3 BUY

Signal Confirmed NO

Signal Changed NO

3pm Index At: 12610

Comments: A fairly straightforward affair during the first 30 minutes with a test of the BRN at 12600, a slight dip beneath it and then a tussle which the BULLS won. Bernanke was speaking as the index was unfolding and his words were described as “gloomy” he also managed to acknowledge that the US may indeed have to ride out a recession. Factory Orders Data was reported and orders were down.The tussle at 12600 spilled over but by 3.05pm the index had risen form its lows and was back above this level.There was NO change of signal. The dip below the 12600 level was not confirmation of a signal change. There were two bounces off the low before the index got back above 12600.

Choices: A few choices when it came to entry had you decided to trade at this point and take advantage of the potential for the index to get to the BRN at 12700. Entries at and around 12608 to 12620 were available between 3.10pm to 3.20pm(ish) with a target of the BRN at 12700.You’d have planned your exit as the index approached and then awaited developments.It may surprise you to discover that I missed this trade today (strong medication, feeling a bit queezy, no sleep, can’t keep my food down and have only one eye working).I saw it, buy did not react !!!

CheckPoint At 4.30pm

Index Trading at:12645

High 12693 (at 3.57pm)

Low (still) 12594

Developments: The index had approached the 12700 level getting as high as 12693 presenting an opportunity to take profits had you entered a BUY earlier. Or you may have opted to stick with it at that point (a tad dangerous as BRN’s can change signals) and this level has not been visted for a good while, even more reason to treat it with caution.

The Dow (Wall Street Daily Cash Index) at 6pm

Index trading at:12638

High (still) 12693

Low (still 12594

Developments:The index was moving down and was lower than you would now expect for a normal retracement pattern (now more than 50 points off its high). The high had been visited again at just after 5pm and there was no progress closer toward the BRN at 12700. Had you not got out of your trade earlier on the approach to the BRN you were probably going to pay the price for not doing so and keeping yourself safe.You could conclude at this point that the signal did change on the approach to the BRN at 12700 to SELL.The index would probably now go and retest its lows. The BRN at 12600 could be supportive on the way down but you would want to wait and see what happened at that level.

Comments: So the signal was now a confirmed SELL and if you were still in your BUY trade you could have expected a retracement back up to at least the 12650 level if not a little higher where you could perhaps salvage some profit. Nearest BRN at this point was 12600 and add 50 (because we are in a SELL situation) and plan to come out at 12650 (possibly a little higher).The key is not to panic.My “where do I get in rough calculation can also be used as a “where do I get out” calculation too. No point in kicking yourself at this point as it is too late.Learn from it !!! BRN’s change signals and you have to watch them carefully. At 12638 the index was not the best SELL entry level as 12600 was close and risk versus reward did not really stack up. Neither did you know what would happen at 12600. Don’t assume wait and see.

At 6.30pm the index was contiuing to decline and was at 12627, a test of the 12600 level was looming.If still in your BUY trade you would be seeing your profits diminish but your SL was going to protect you as the index would be retracing back up a little later probably after 7pm where you would get the opportunity to get out with profit.If now looking to SELL this was NOT a good place for obvious reasons and you would look to get in higher up using the “where do I get in calculation”. Nearest BRN = 12600 plus 50 = 12650(ish).

At 7pm the index was back at 12650 and you’d have been poised to come out of your BUY trade if still in it and be gearing up for a SELL trade. The index did get back up to 12674 at 7.12pm and was little ower at 12666 at 7.17pm………..good exit for your BUY and a great entry for your SELL. Target for your SELL at least 12600.

At 7.30pm the index had resumed its decline and was at 12636. Not a good place to SELL as 12600 too close.

At 8pm the index was now at a new low of 12576. Might it fall to the PP at 12538. Possibly, but no guarantee of that as time is marching on. You would gear up to taking your profits at any time if the fall looked to be running out of steam.

At 8.30pm the index had become very choppy and was now back up to 12594.The index had been down to 12557 at 8.08pm and had you not got out already this choppiness might have suggested you get out now.The index rose above 12600 to close where it settled at 12605 at 9pm.

I did all my usual checkpoints etc., today and was ready to trade but I did not end up participating at all.I must feel more under the weather than I care to admit !!!

Straightforward early session towards the 12700 level and then trickier.

With Jobless Claims tomorrow and Bernanke again lots of potential for a very profitable day. I am with the BEARS but wil as ever be guided by the numbers !!!

Julie

Pivot Point Trading The Dow Cash Index On 1 April

tradethedowjones — Tue, 01 Apr 2008 22:44:40 +0000

Hi Everyone,

A significant move on the dow today and a potentially bumper payday if you know how to use Pivot Points to your advantage.

Before The Opening Bell

Some big banks were reporting further write downs due to the credit crisis and this was encouraging bullish behaviour, traders deciding that the worst is probably over..

Gold was slumping and Crude Oil prices were below $100 a barrel for the first time in a while, this helped the USD up to higher ground.

Manufacturing and Construction Spending Data was due at 3pm.

Please note: For those of you that have asked, I include this pre opening pre-amble to put some context around the index for the day. If reading the Market Watch site yourself before the markets open please do not allow the headlines to colour your views about what the index may do when it opens. Take your cue from the opening price and its subsequent movement in relation to the numbers.Just remember that depending upon the mood/sentiment of the market, data can have no impact, significant impact or can be brushed aside within a couple of minutes regardless of its importance.

I have said it before, the markets always forget and rarely remember and that is why intraday trading throws up some great profitable opportunities.

SW Report

UP level is 12650

DN level is None

Watch 12100 to 12200

Short Term Watch 12325 UP and 12240 DOWN

The Dow (Wall Street Daily Cash Index) at 2.30pm

Open 12398

High 12450

Low 12395

Initial Signal Rule 6 BUY

Signal Confirmed YES

Signal Changed NO

3pm Index At:12446

Comments: The index was quick off the mark today and soon disposed of the 12400 level. There was some meandering during the first 30 minutes but the intensions of the index could not have been clearer.As soon as 3pm struck there was a series of higher highs underpinning the BUY signal and no return to the lows. The index did not get below the 12470 level again. The breach of the BRN at 12500 dragged its feet a little but came at 3.32pm.

Choices:You could have been in quickly today as soon as the first higher high was posted before 3.01pm struck and this would have got you in at around 12473. You would have needed to monitor the index to see it safely through the 12500 level. You could also have opted to see the 12500 level breach and entered around this level using 12470 for your SL but again you would have perhaps wanted to see the R2 level dealt with as this lay ahead at 12537.Risk versus reward was not good on either of the first two options.Or you had a third option and that was to wait until R2 was breached clearing the path to the BRN at 12600. Which choice you made mattered not as long as you understood the need to monitor the index at the KEY levels that lay ahead.

CheckPoint At 4.30pm

Index Trading at:12520

High 12539 (breach of R2 at 4.01pm)

Low (still) 12395

Developments: Had you waited for the third option above then the breach of the R2 level did occur at 4.01pm and the index retraced mildy back to around 12519(ish) where it hung aroung around for about 30 minutes. So at this level at 4.30pm this was an excellent entry point as the path was clear to the BRN at 12600.

Comments: Had you entered your BUY trade earlier then you would have just stuck with it and looked for the advance to 12600 to develop.You would plan on exiting at 12600 to await developments. And consider this.You can then get back into the index following the customary retracement later and maximise your profits. If the index was going to get to 12600 you would get the chance to get back on board at around the 12550(ish) level following the retracement.

The Dow (Wall Street Daily Cash Index) at 6pm

Index trading at:12559

High(higher) 12580 (at 5.25pm)

Low (still) 12395

Developments: The higher high a little earlier indicated the index’s intention to push forward and higher.

Comments:You could have entered here if not already in trade and used the safety of the R2 level for your SL.If in trade from an earlier entry you would be gearing up to exit your trade as the index approached the BRN at 12600.

At 6.30pm the index was at 12592 so time to get out and take profits if you also wanted to take advanatge of the retracement.The index had made a higher high at 6.26pm reaching (surprise surprise) 12599.You could of course just stuck with it and monitored your trade half hourly from now on and made sure there was no signal change at the BRN at 12600 and that the index breached it. There was certainly no forcible rejection as the index approached it and therefore NO suggestion that a signal change was on the cards.

Additional Comments: Do not view the retracement of the index as a rejection at the top close to the relevant BRN. You can anticipate a retracement and you should by now recognise a forcible rejection at a BRN or other KEY level.They are very different. Easier to observe than put into words, but a forcible rejection would send the index down swiftly causing it to fall more than 50(ish) points in quick order. A retracement is a more controlled move down to an anticipated level usually around 50 points away from the relevant BRN.

At 7pm the index was retracing and was trading at 12558 a great place to re-enter a BUY had you come out earlier close to 12600. The index high was still 12599.

The index got a little lower down to 12548 at 7.07pm, also a great entry point for your BUY trade.

At 7.30pm the index was now heading up again trading at 12580 and 12600 was in its sights for the second time. At 7.34pm 12600 was breached and the target for profits was R3 at 12674. Time was marching on so R3 might have been too much to ask but you would have stuck with it with this intention preparing to exit as it got close to it.

At 8pm the index was still above 12600 at 12612 and if not already in trade it was worth getting in here for the final push up to the R3 level.The index had already posted a higher high at 7.53pm reaching 12641.

At 8.30pm the index was trading at 12630 and still no need to do anything if in trade other than wait for the final push up.

A mild pullback/retrace to 12592 at 8.35pm (a BUY opportunity for late comers) and then the index rose into the close where it settled at 12654, not quite reaching its R3 level.

The Advantage Of Trading To The BRN And Then Taking Advantage Of The Retracement

Had you entered the index today at 12520 and came out at 12599. Then awaited the retracement getting back in at 12550 and staying with it into the close you would have made 183 points profit.

Had you got in at 12520 and stayed in trade until the close you’d have only made 134 points profit.

Taking advantage of the retracement allows you to benefit from some of the move made by the index twice. Use this to your advantage.

Julie

Pivot Point Trading On March 31……….The Dow Index

tradethedowjones — Mon, 31 Mar 2008 23:25:57 +0000

Before The Opening Bell

Merck (Dow Company) was likely to weigh on the index due to profit forecast.

There was some speculation that the markets would try and finish the first quarter in the green ahead of an week full of economic data likely to confirm or challenge that the US is in recession.

Chicago Manufacturing Data was due at 2.45pm and a Fed speaker was to outline at 3pm new policy to regulate the financial markets (predominantly aimed at mortgage transactions).

SWatch Report

UP level is 12450

DN level is 11700

Watch 12200 and 12400 in the near term

The Dow (Wall Street Daily Cash Index) at 2.30pm

Open 12200

High 12250

Low 12178

Initial Signal Rule 5 (closer to the S1 level than to the PP)

Signal Confirmed YES

Signal Changed NO

3pm Index At:12236

Please also see footnote regarding Pivot Points.

Comments: At this point of the session I was working with a Pivot Point of 12265 (obtained from main Live Charts site) hence my classification as a Rule 5.The index spent most of the first 30 minutes above the 12200 level with only brief periods below it.It failed to reach the PP which did confirm that we had a SELL signal at 3pm. Chicago Manufacturing Data came in at 2.45pm still showing contraction of business but it was an improved situation compared to Feruary results. Paulson delivered his outline plan for better regulation of mortgage transactions.

Choices:The index did present a few good entry points for a SELL trade but the SELL signal bumped into what became support at 12200 shortly into the early session. It was clear by about 3.34pm that the index was not going to get down to its previous low nor make any further lows as there had been three attempts to do so all of which had failed at around the 12190(ish) level. The 12200 level then became a feature of the price movement and the index dwelt here from 3.34pm to 3.50pm when it became clear that the signal had changed at this BRN. Any SELL trade entered earlier was good for only 30 points (or so) and you’d have exited when the 12200 level took hold.A good entry for a BUY trade presented at 3.52pm at around the 12206 price. Target was the PP and potentially the BRN at 12300.

Additional Comments:I suppose the lesson here is to remember that a BRN level or any other recognised level can allow the index through it initially but can then turn supportive (or resistant) and consequently change the original signal. I personally was waiting for a LOWER LOW beneath the early low of 12178 before making a move.There was absolutely nothing wrong getting into the index on a SELL trade initially as long as you then recognised what was happening at the 12200 level and got out as soon as possible.

Do remember that trading is very much based on taking into account the relevant information presented to you at various times. Every trade is a risk of 31 to 33 points and your mental stop loss SHOULD be exercised if your trade does not show a small profit shortly after placing it.

CheckPoint At 4.30pm

Index Trading at:12259

High (higher) 12259

Low (still) 12178

Developments: At this level the index was not a good place to enter as the PP was close and risk versus reward did not stack up. BUY signal, however, still intact.

The Dow (Wall Street Daily Cash Index) at 6pm

Index trading at:12295

High 12295

Low (still) 12178

Developments: The index was now at a new high just beneath the BRN at 12300. The BUY signal was still intact.

Comments:At this point you can do the “where do I get in calculation” to give you your preferred entry point (range for later in the session). Nearest BRN = 12300 – 50 = 12250. Generally, speaking you can expect this level to present itself between 7pm and 8pm. Do the calculation and if necessary repeat it again at 7pm.When you see that level presented later, get in at around the number you have calculated and use a 31 to 33 point SL.

Additional Comments: I am aware from e mails that some of you are seeing higher highs as a signal to go long (and lower lows as a signal to go short). You have to remember that you would NOT go long when the index is at or near to its high of the day nor would you go short if the index is at or near to its low of the day. You would wait until you could get into the index at a lower point for a LONG trade and a higher point for a SHORT trade. Trading By Numbers is NOT a breakout system. Please note this well as it will keep you out of bad trades that lose.

At 6.30pm the index was at a new high of 12315 confirming that the BRN 12300 was NOT resistant at this point. The preferred entry level calculation would have produced the same outcome at this point.

At 7pm the index was at 12293 but had been as high as 12326 at 6.31pm. Again, the preferred entry level calculation would have given you the same entry level at this point.

At 7.30pm the index was trading at 12285 and its retracement was in progress. The preferred entry level calculation would have resulted in the same number of 12250 at this point too. I am labouring this aspect to push the message home that it is possible to (roughly) calculate preferred entry points in the later session as some of you are still finding it tricky.It is not 100% foolproof (no method can be) but it puts YOU in control and you know what you are looking for rather than floundering and making wild guesses as the session moves forward.It is far better to be prepared rather than be taken by surprise.

At 8pm the index was still retracing and was at 12261 and so the preferred entry level was getting close at this point.Time to stick around so that you can execute your BUY trade up to 12300 or a little higher time permitting (as time is now marching on).

At 8.07pm the index was at 12249.

At 8.18pm the index was at 12247.

At 8.30pm the index was trading at 12253 at the preferred entry level if you missed it at 8.07pm and 8.18pm.

You would now be looking to ride the index up to at least 12300 if not a little higher where you would exit and take profits.Had you entered your BUY trade in the early session at around 12206(ish) at 3.50pm(ish) then you would also be gearing up for your exit had you not exited earlier in the session.

The index did rise from the 12250 level to 12307 by 8.47pm. It then fell into the close where it settled at 12262 at 9pm.

Footnote: There have been problems obtaining the PP’s from www.livecharts.co.uk/pivot_points

for the last couple of days. One of my clients has been informed that the symbol used for The Dow Index has been altered by Yahoo and is now: ^DJI

PP’s obtained via the Auto Pivot Point tab at the homepage of the website we use have served as useful substitute during the glitch but they do pan out as slightly different figures.

So the PP today was actually 12274 NOT 12265. S1 was 12106 NOT 12148. R1 was 12383 NOT 12333. Using the preferred and more reliable figures would have resulted in a Rule 4 at 2.30pm and 3pm but subsequent price movement and the change of signal at the 12200 level a little later did not significantly alter later trading decisons.

Julie

Pivot Point Trading On March 28

tradethedowjones — Sun, 30 Mar 2008 12:25:27 +0000

Hi Everyone,

For regular readers of this blog I do wonder whether any reservations you had about Pivot Point Trading have been dealt with. There are many who say that Pivot Point Trading does not work, is unreliable, needs to be married with other forms of technical analysis. Well it can be unreliable unless you incorporate the approach into a system that correctly anticipates where the turning points on the market are going to come. When you have such a system then Pivot Point Trading works like a dream as long as the market is moving. No charts nor technical analysis required.

Here’s what the system made possible on Friday 28 March. The index took its time but eventually gave up a lot.

Before The Opening Bell

Store Sales forecasts were coming in and were less then optimistic.

The latest round of Fed funding had not been fully utilised indicating that liquidity problems were perhaps easing.

Core Inflation figures had come in at 2% well within the comfort zone.

Incomes had risen 0.5%,spending was as forecast and consumer spending was flat.

SW Report

UP level is 12450

DN level is 11700

Watch 12350 for early strength and 12400.

The Dow (Wall Street Daily Cash Index) at 2.30pm (adjusted to 1.30pm)

Open 12347

High 12366

Low 12313

Initial Signal Rule 3 BUY

Signal Confirmed NO

Signal Changed Rule 7 Breach of PP

2pm Index At: 12351

Comments: With the PP breached at 1.33pm this quickly became a Rule 7 situation.And that was about the only thing that was quick about the index for a while until the directional bias became clear.It was clear that the levels and BRN’s at 12300 and 12400 would be crucial to how movement would unfold.And when it is dragging its feet it is best to just leave things to develop and come back later to see what has happened.A break of 12400 at the top or a break of 12300 at the bottom would rule the session.My money was on the break at the bottom coming at some point because as you know I do not think this index has found its lowest point yet. Would I have assumed that at this point, definately not.

Choices:There were a couple of higher highs at 2.03pm and then the index backed off the highs and some very pregnant pauses followed.The index was clearly hampered at the top by the BRN at 12400. The index stood still several times and then traded under its PP for a good while.There was no trade at this point as 12400 had not been breached and neither had 12300. I noted that the PP was putting up some resistance.Neither a BUY nor a SELL would have stacked up and had you decided one way or another then you were not following the TBN’s system. You were just guessing.You must wait for the index to show you its intentions.When it isn’t, just leave it.

CheckPoint At 4.30pm (adjusted to 3.30pm)

Index Trading at:12342

High 12382 (at 2.03pm)

Low (lower) 12307 (2.57pm)

Developments: There had now been a lower low and the index was trying to get back to the PP as happens with a Rule 7 situation but there had still been no break at 12300 nor at the top at 12400. The directional bias was gearing up to be down but I decided I would wait for the break of the 12300 level before trading a SELL.I left the platform to again let the action develop.

The Dow (Wall Street Daily Cash Index) at 6pm(adjusted to 5pm)

Index trading at:12293

High 12382

Low (lower) 12288 (at 4.49pm)

Developments: Movement had unfolded now and directional bias was confirmed as down. The index had made three attempts to reach its PP between 3.35pm and 3.50pm all of which had failed (the index only getting as high as 12349). The 12300 had been breached at 4.45pm.

Comments:I had decided to place a SELL above the 12300 level when that presented itself later.I would use the 12350 level as my SL.

At 5.30pm the index was trading at 12309. Its high and low was unchanged. I sold here.Target was initially S1 at 12238. I was a little exposed to a retracement towards the higher ground level and so I pegged my SL to 12450 (the index had not been here since 3.48pm).

At 6pm the index was lower at 12278, its low now 12276 made a few minutes earlier.This was still a good entry point as you could peg your SL to the 12300 level and expect the S1 level to be reached at least if not 12200.Risk versus reward just about stacked up.

At 6.30pm the index was now at 12267 and again had just made a lower low at 12266.The index was not showing any real signs of a retracement or significant pullback. It was just grinding its way down.

At 7pm the index was at 12270, it had been down at 12254 minutes earlier making a lower low.If you were in trade you would just continue to hang in there either looking for support at S1 (12238) or a breach down to 12200.

At 7.30pm the index was now through S1 at 12232 but had been lower at 12212 at around 7.15pm.You would gear up now to take profits at 12200 if still in trade.

The index did fall to 12199 at 7.48pm and then rose into its close settling at 12216 at 8pm.

This was an awkward session to say the least. Quite slow at times and required patience.The fall to 12200 I am viewing as significant and a breakthrough. I am not assuming it is all downhill on Monday as this index fights back and I will very much be basing my trading decisions on what the index does in relation to the numbers when it opens on Monday at 2.30pm. I suggest you all do the same.

We will be back to normal opening times on Monday following the adjustment of our clocks so be at your platform ready at 2.30pm.

Julie

Pivot Point Trading On The Dow On March 27

tradethedowjones — Fri, 28 Mar 2008 18:11:05 +0000

Before The Opening Bell

An oil pipleine in Iraq had been blown up sending Crude Oil prices up.

Oracle reported earnings after the bell last night and has not faired that well.

Gold getting hit and price significantly off its highs (a sign money may be returning to stocks/equities).

The USD advancing ahead of GDP and Jobless Claims Data and calls for less rate cuts.

GDP unrevised at 0.6% annualised growth – weakest growth forecast for 6 years

Higher consumer spending predicted and leaner inventories.

Initial Jobless Claims had dipped while continuing claims were rising.

Google also slipping in the charts dropping 2.4% due to lost revenue from Pay Per Click Advertising (might be due to it being too expensive !!!).

SW Report

UP level is 12650

DN level is 12350

Watch range 12380 to 12470 (interestingly yesterday’s range !!!)

The Dow (Wall Street Daily Cash Index) at 2.30pm(adjusted to 1.30pm)

Open 12463

High 12475

Low 12426

Initial Signal Rule 3 BUY

Signal Confirmed NO

Signal Changed YES Breach of PP Now A Rule 7

2pm Index At:12449

Comments:Weakness in evidence during the first 30 minutes and the opening action almost mirrored that of yesterday. The index moving between 12400 and 12500 but showing signs of breaking through the bottom at some point. With a Rule 7 you do have to wait and determine in which direction the index will travel and it is not possible (generally) to be able to rush into a trade (not that you should want to).In this situation I want to see a lower low or a higher high as either will firm up the initial directional bias. I expected the 12400 level to give way and sat on my hands leaving things to unfold a little more.The first of several lower lows came at 2.07pm. The 12400 level broke down at 2.20pm.The next level of interest was at 12380 and this gave way too at 2.23pm (of interest because it was mentioned in the SW report and it had kept the index at bay yesterday).Onward then, to test S1 at 12356.This gave way at 2.31pm and the low developed down to 12336 at 2.33pm. Allow the index to clear its path and show you what it is doing.You can capitalise later there is no rush.

Choices:This was a Rule 7 situation and the index will make its move and show you its directional bias.It had and it was definately down.With the breach of S1 at 2.31pm the path was clear to the BRN at 12300 but the index would revisit higher ground before making this move.The PP and the high above it at 12475 would act as a pull on the index as the session developed and I would wait to trade a SELL on a retracement later.My preferred entry point for this SELL trade would be around the 12420 to 12450 level and I would expect this to come around in the later session.This had a potential 150 points profit down to 12300. Meanwhile, there was a BUY opportunity to take advantage of as the index would come of its lows and return to higher ground (a predicatable feature of a Rule 7). An entry at around 12350 was available at 2.48pm and you could reasonably expect this rise to take you to about the PP level or higher as there was a high above the PP.Or you might have waited for entry at the S1 level.

CheckPoint At 4.30pm(adjusted to 3.30pm)

Index Trading at:12374

High 12475

Low 12336 (at 2.33pm)

Developments: The predictable rise back towards the PP and beyond was in progress. It was safe to enter here and use the S1 level for SL purposes as the index was being pulled back up towards the PP at least (due to it being a Rule 7). I am stressing this because I know you are not taking advantage in this situation.

The Dow (Wall Street Daily Cash Index) at 6pm (adjusted to 5pm)

Index trading at:12421

High 12475

Low 12336

Developments:The index had reached the 12450 level at 4.43pm. Time to exit your buy trade if you had BOUGHT at 12350 or a little higher up and reverse on a SELL trade back down (SELL trade preferred entry level reached). The index was now getting underway to resume its decline and take a shot later at the 12300 level.

Comments: Getting in here at 12421 on a SELL was a good entry point and pegging to the PP and a little beyond to 12450 was very safe.

At 5.30pm the index was at 12408 also a good entry point if you were not already on a SELL trade.Pegging your SL to the PP was sensible.

At 6pm the decline was maturing nicely and the index was at 12354. A slightly lower low followed at 6.04pm to 12335. This serves as an “I’m still going down” message.This was not a good place to enter a SELL as the final retracement back up for the index would be coming later and you would wait for that. To some extent you can set your watch for the final retracement and expect it to happen by about 7pm (usually 8pm).It should be regarded as your final opportunity to get on board…………..your last chance for maximum profits. Had you entered your SELL trade above 12420 or higher earlier there was no need to make any adjustments. You would stay with it despite the retracement.

At 6.30pm the index was now making its final rise before its final decline and was at 12372.

At 7pm the index had been above the 12400 level again (this happened at 6.51pm rising to 12416). A great entry point or around 12400 was great too. And now it would resume its decline and hopefully head for 12300.

At 7pm the index was in decline and trading at 12379 (you could have entered here and pegged to 12400 if you had missed the previous chances presented earlier).

At 7.30pm the index was now at 12360 and still falling.

The index continued to fall and got as low as 12295 shortly before the close. It rose slightly and settled at 12302 at 8pm.

I know, I keep telling you that a Rule 7 is my favourite signal/rule but today is a great example of why it is. A day for really upping your stakes and taking full advantage of the cash cow dow.

The Dow Summary IRO Friday 28 March will be issued as usual on Sunday at some point.

Julie