Know When To Hold 'Em
Dominick
February 26, 2008
This continues to
be a trader’s market, no doubt about it.
When it takes three months for the market to swing a hundred points in
any one direction, but you can get 30 points in an hour, this is clearly not
time to buy and hold.
The problem for
many, though, is that they simply don’t know how to trade short time frames and
most subscription services don’t specialize in real time analysis. Not so with TTC! Read on to see how we traded this past Friday and what it really
means to be unbiased in this topsy-turvy market.
The chart above
was posted Friday morning and shows the operative bullish and bearish
counts. Naturally, the bears traded the
top chart and the bulls traded the bottom one.
But only TTC traded both!
First, the top
count kept us short into our proprietary target at 1333, where we got out of
the trade. The market then spent the
rest of the day vibrating around this level and members were advised to stay
out of the chop and wait for a new low that would launch the rally suggested in
the bull chart. As you know, that low
appeared in the final hour on Friday and, believe it or not, we were there
buying with open arms.
This charts above our
proprietary 5 and 15 min trend cycle indicator. As you can see, the 5min remained pegged to the top of its trend
channel from early afternoon, just one more reason TTC members knew not to be
fooled by the selling. Once the 15min
started to pop at the lows, members had their trigger that was agreeing with
what I posted just a couple of hours before. I had posted the following
statement, “if there was ever a bear
trap, it’s soon”. So as you see, TTC was ready, were you? There’s always
news offered after a major move like the one that materialized late Friday, but
when technical analysis consistently predicts the reaction before the news is
released it’s hard to believe the news is what’s really driving the moves.
To be fair, I
didn’t expect the full extent of the rally to happen so quickly. But, members knew my immediate target was at
least above 1342 and when a surge appears with such momentum, we always respect
it and move our target upwards, 1352 in this case. It looks like next week, we’ll again be in the vicinity of 1360,
a number I first introduced in 2006 and which has again been guiding this
market for the past few months. It
continues to be a number to watch.
But, on the
strength of the manic short-covering surge that no one thought could happen
earlier in the day, we cashed out into the weekend very pleased. We never thought the bears’ 3 of 3 of 3 down
was a foregone conclusion, and it looks like when it finally appeared on Friday
it was moving in the wrong direction! The bulls took advantage of a fairly
immaterial rumor that could totally unravel next week if the large triangle
remains in play. In all, the late rally
was another example of how you could loose your entire week in a few minutes,
and why it’s pointless to rely on weekly updates when the market evolves so
quickly. But stay tuned, the unbiased
will profit in any environment because they know when to hold ‘em … and when to
trade.
If you’re thinking
twice about paying for a reliable service, consider the chart above which shows
the bargain TTC members find week in and week out.
So, do you want to
learn how to trade short term time frames?
Would you like access to next week’s charts posted in the weekly forum
right now? Twenty to thirty big picture charts are posted every weekend in many
markets, here is an example
of a few past ones. If you feel the
resources at TTC could help make you a better trader, don’t forget that TTC
will be closing its doors to retail members this year. Institutional traders
have become a major part of our membership and we're looking forward to making
them our focus.
TTC is not like
other forums, and if you're a retail trader/investor looking to improve your
trading, you’ve never seen anything like our proprietary targets, indicators, real-time
chat, and open educational discussions.
But the only way to get in is to join before the lockout starts – once
the doors close to retail members, we'll use a waiting list to accept new
members from time to time, perhaps as often as quarterly, but only as often as
we're able to accommodate them. Don't get locked out later, join now.
Have a profitable
and safe week trading, and remember:
"Unbiased Elliott Wave works!"
Dominick
a.k.a. Spwaver
TradingTheCharts.com
www.tradingthecharts.com
This update is provided as general information and is not an investment
recommendation. TTC accepts no liability whatsoever for any losses resulting
from action taken based on the contents of its charts, commentaries, or price
data. Securities and commodities markets involve inherent risk and not all
positions are suitable for each individual. Check with your licensed financial
advisor or broker prior to taking any action.
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