DOW - ES Charts 27/01 - 31/01

ChartMan

Legendary member
5,580 46
Little change today, but some violent action that could have proved profitable if you were on your toes. Drop to support on the open followed by an equally rapid rise to resistance then a 200 point drop and out of support before finally settling back along the support line and an attempt at resistance into the close.
A sobering thought for the longer term trader... a single contract on IB for ES futs held for that last seven days would have netted $50,000 :(
Not bad if you can get it..... Do I detect some upside? Maybe, but I'd want to see 8000 then 8100 first before even thinking about a bottom.....
 

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techMark

Junior member
16 0
$5,000 rather than $50,000 for a single es contract. Just a slip of the keyboard I would guess. Very tasty all the same!
 

nickerson334

Active member
156 2
Dow 30 Support

Yeah, I've had a great 8 days shorting minor resistance 3 or 4 times a day. I'm looking at that for the break at 8180 / 200 and I'll take the back seat for a few days to see where it's going.

Ftse just entered negative territory. I havn't got the DJ Futures up right now but I expect the index will not get the bright start it was hoping for.
 

ChartMan

Legendary member
5,580 46
You might not have to wait long, nickerson.....Without good reason, the DOW turned on 8K and reversed the trend,almost. Closing at the 100MA is the closest it has been for 8 days or so. Now we have to see if this bottom can be consolidated. Staying above the 100MA and closing above it tomorrow should be enough to confirm the bottom reversal.Nice pullback to the old resistance line to become support.
 

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ChartMan

Legendary member
5,580 46
Using a combination of CCI, RSI and PD made for a relatively successful day......
 

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nickerson334

Active member
156 2
dow bounce

Hi Chartman

I'm looking to short all the way down to 7000 in the next few weeks due to the unusual political situation, adding to my position every 100 points or so. I'm doing the same with FTSE and long with Euro$.

It's worth a shot with failry low risk for a 2000% profit. It's great to have a few days / (hopefuly!) weeks away from daytrading and if it dosn't work out I'm only that lenght of time behind with usual strategy + a probable small loss.

The main thing is a mobile news alert for when the first bomb hits Iraq as all hell will break loose on the futues / currency market.

If stops are kept tight it's an excellent low risk opportunity with substancial profit potential.
 

ChartMan

Legendary member
5,580 46
I wouldn't bank on 7K, but it's a fair bet. Certainly more chance of that than 9K. Still, for now it's a confirmed bottom and looking for confirmation of an up trend. The bad news is the expanding triangle that can lead to high volatility. In this market that could mean a sizable drop!For now though, we're sitting above the 100MA and common sense says we should carry on.....
 

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ChartMan

Legendary member
5,580 46
Great day for trading the 100MA on the1 min chart. Classic tests of resistance and support as the price touched the 100MA. Final crossover giving two nice pullback to support just below 8000 before rallying up before dropping 30 points into the close.
 

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ChartMan

Legendary member
5,580 46
Nice step ups on the 00's and 05's. An ND top and RS Switch to boot.
 

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nickerson334

Active member
156 2
Good information Chartman. If FTSE breaks through 3580 or Dow 8190 / 200 I'll accept that my timing was wrong for a definite movement south and return to usual technical day trading strategy.

I think though that when the U.S. propaganda machine moves up a gear with pre-set daily speeches and justifications for the war, by all leading republicans, the sellers will move in until it looks like the war has been won.

My reseach has warned me never to trade the news although there is an exception to every rule and I think is it.

Is there anyone taking a similar view or the precise oppsite?
 

ChartMan

Legendary member
5,580 46
With the yanks 75% in favour ad the UK 75% against, it's no wonder we're in volatile times. Who knows what effect any particular piece of info will have ? All my observations tell me that given a "bad " piece of spontaneous news that causes the market to tank 100-150 points ( or whatever), it recovers in an hour or so. This war machine syndrome is not spontaneous news though. I would expect , however, that on the first hint of the first bomb , there will be a spontaneous reaction, and an excuse for the MM's to refill their coffers.
 
 
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