Feb. 28, 2005: "V "

After close analysis:

Was out for most of the morning so didn't trade. This was a great month, just like Jan. where volatility picked up and provided nice returns. No surprises today, which capped a great month (close to creating a million dollar baby :P): market was overdue for a pullback, and got a steep one. One could tell that market was setting up for a pullback just by looking at how NQ opened below it's ema, followed by morning cnsld then breakdown. There were 3 nice trades I could've taken, 2 of them were setups: 2 bo and later a 6bo which hit its objective. I see more consolidation on the way.

Observation(s) of the day: retracement to morning b/o point which halted further advance. Also Dow's inability to gather steam and poke thru 10850-75 area (bull/bear levels). This is what I'm following and the market has shown its hand in terms of what levels will decide on the next big move!

Market breadth was -ve for most of the day. Vold, Add, and Addq all opened below previous day's range and went downhill from there before retracing later in the day. Vold on the decline was lesser than that seen on Friday's upside move. So, for now it's a pullback until further notice.

Futures were in unison. AB, ES, NQ had a cnsld day. AB & ES bounced off their emas and retraced to morning b/o pt. The so reliable ES200R closed in bullish area.

Indices SMH & SOX and Dow pulled back and bounced off their emas (amazing how scripted some of this action is!). One can see clearly the H& S on Dow setting up this morning and breaking down. This is one of the most consistent patterns on Dow (more on that later), and I've followed it on Ed Down's Dow analysis. It's very clear that the 1085-75 is "the" level: still think if Dow musters some firepower it'll make an all-time high if it gets over this hump.

Overall neutral day!

Weekly Rehab!

Taking a closer look at Sox, it does have "Sox appeal" haha.... It sure looks bullish based on pattern within pattern. How about AAPL? It sure looks like it's suffering from wacky parabolic syndrome... Puts?

Interesting and amazingly similar bar patterns on the NDX weekly (5 bars): if repeats then market should push much higher next week.

Added AB systems results as of this week with Equity curve!! Wow, how about trading 10 cars with this?! ...... Still doing some research on breadth: looks very promising so far.... also, reposting here the 7-bar pattern and 60min recent hi/low DYO... (note to self: all research will be posted in weekly rehab to know where to look!)

Talked about running a session on how to use volume effectively when daytrading... TOC has some nice skills using DYO, will work w/him for a while. Aw, I like those transparent windows, problem is can't overlay charts within ensign to make use of it...Sigh! How about this really nice viewer (FREE!!!) to scan charts quickly for intraday patterns... Can it be installed on website to scan what we got on there?! Will ask dbq.....

Feb. 25, 2005: TD

After close analysis:

What a day! Yesterday gave warning signs that this was gonna be a continuation, and sure did! TD with brief cnsld. Entered 1 trade in morning on 3min bo with reversal on 30m. There were plenty of continuation trades this afternoon, but I don't trade Friday afternoons. I would like to see a pullback/cnsld on Monday.

Observation(s) of the day: the pullback on Addq to yesterday's bo range and finding support before reversing.

Market breadth spent day in positive territory after a brief morning cnsld. Vold reached higher levels than previous couple of days, while Add and Addq found support at yesterday's bo range and rallied.

Futures were up all day. AB & ES rallied pretty much for the day. NQ was lethargic though hmm....ES200R continues to impress w/its sloping base pattern playing out on the bullish side.

Indices did great on the long side. Most importantly is the Dow: it's up against the 10870 area and if it clears that I don't know what else is between it and visiting all-time highs if not higher!! Sox & SMH also bo'ed and stopped at multi-day hi. I expect them to take it out and move higher.

Overall positive day!

Feb. 24, 2005: Crane

After close analysis:

So much to cover today. First, in hindsight, there was divergence between AB, NQ and ES/Dow while Vold was climbing all day yesterday. It could've gone either way but I guess the answer is clear now. Today, the patterns were clear and the market was showing strength (buying pressure) in the morning as there were plenty of triangles. This was one of the easier days to trade and certainly much better than yesterday. Today's pattern is a "CRANE" where by after consolidation it goes up in a parabolic way! Nice 6bo setup and I took it earlier on a 2bo. There was a continuation trade later on but didn't take it (why???). Wow, I got dizzy making predictions for following day, but based on how breadth behaved today it looks like this reversal might have legs.

Thought(s) of the day: I have this aweful feeling - need to spend some time alone.

Market breadth held in the morning and rallied in the afternoon. Vold didn't do much until it broke out of its 7-bar range. Addq had an interesting story by forming a triangle in the morning and holding apex till it bo'ed in the afternoon. Same with Add.

Futures were mixed in morning: AB dipped lower while ES and NQ held their serve. Buildup was clear on AB (triangle) and it was a matter of time before it bo'ed. Emas were clear resistance and key level for bo was 622-23 levels from yesterday. NQ was encouraging and confirmed breakout in the market. This is an encouraging sign. ES200R chart is bullish and had a "sloping base" pattern.

Indices did very well on reversal. Interesting observation is Dow where it held apex for last 2 days and reversed of that. Apex was around 10650 area and that's key. If it holds this level then we'll see plenty of upside. SMH & SOX reversed and are above their emas. Now what??

Overall positive day!

Feb. 23, 2005: Inside Day

After close analysis:

Ok, so we got some cnsld after a major move yesterday. Nothing spectacular about the retracements today other than triangles and cnsld patterns and Inside Days implying continuation. Almost everything hit its ema and continued down to some extent. Tomorrow I'm looking for some continuation on the short side, unless there's a convincing xover above emas. 6bo failed, but 2bo reversal worked after an early 1br (12:30, not according to 1pm rule) - I got lucky w/it but market was weak and ema was clear resistance. Had couple of ok trades with minor losses. Not a bad start for week though.

Market breadth was mixed. Vold kept going up all day, and the 7-bar pattern is continuing to show promise (1st day I have it live). Add and Addq opened higher but continued to bleed lower all day. My bias for sure was on the short side. All had mixed xover

Futures mixed as well. Ab was the cleanest (plenty of Tide!), NQ stayed below ema as well with retracements against resistance, while ES was the star on the long side (15min). The Es200R chart is definitely more reliable! Everything is still bearish!

Indices were better off on the long side. Dow had what looked like a mini-TD day rallying after finding apex support. SMH & SOX both had triangles and reversed off apex, but still below their emas. Interesting to see how they behave tomorrow.

Overall positive day!

Feb. 22, 2005: TD

After close analysis:

Didn't trade today (was busy w/other things). Analysis from last week said we might retrace to neckline or go down, well we had both!! TD all the way (yeehaww!) after a morning gap down (a trap, how many times now has this happened?? that's why I like breaks in the afternoon rather than mornings!) and retracement to/above emas. The H&S on all indices played out correctly and now the market is definitely in a downward trend. Nice 2b0, 6bo (auto hit), then another 2bo setup: yummy yummy all money! Tomorrow I'm expecting a follow through on the downside with some retracement/cnsld.

Thought(s) of the day: added 2 things to charts that I want to track for a while. 150/200 threshold on Vold with 7bar pattern, and 60min recent hi/low on AB... also tried 90min... Looks like that DYO gives nice visual on higher highs/lows etc for bo setups. Yay, range study working :) I've also marked on charts the various spots where there were breaks.... I analyzed my trades and stats and looks like the 6bo and 26bo are the ones to play... will share findings with room later this week.

Market breadth -ve and quite strong. After morning cnsld and a lower open, Add, Addq, and Vold broke down. All 3 hit v. extreme levels!

Futures were in sync. AB and ES had a beautiful cnsld below their ema then broke down! I like it when bars curl around ema. NQ after a morning fakeout above ema also joined the party and provided nice confirmation for couple of entries. That ES200R chart is amazing: price hit resistance as it reached ema. All are below their emas.

Indices didn't do any better. SMH & SOX faked in the morning above their emas but soon reversed and went down w/rest of market. Will be interesting to see how they do tomorrow cuz they're right at apex! Usually some cnsld is required around that area before a major move happens and that's what I'm expecting. Dow didn't do any better and breached the 10630-50 area (very important). Translation: more downside.

Overall neutral day!

Weekly rehab!

Here's how to display intraday range using DYO (drinking your own?! haha!)... wow, how about in your face (boys and their toys!)... Ok, now w/some updates on AB stats as of Feb. 18, 2005....

Through the rubbles emerges a nice chart on Voldq patterns....

Also found some nice sites (I think dbq and rosita will like) and professional trader's diary/blog about Forex and Euro 3P (product) trading where he mentioned being mentored by Peter Bain and that Osci's suck! Here's a sample from his diary (he got a nice blog too):

I have found that MACD, Bollingers, Stochastics and EMAs generate dangerous trading signals for Forex. It hasn't been lost on me that those who advocate them don't trade Forex themselves!! Pivots help identify the day's hotspots, candles help with reversals and EMAs give some idea of bias, but close up and personal only the three products work. Time and time again, in my experience and in my reading, I have noted that technical indicators are just too slow for Forex. Anybody can look at a historical chart and show the Stochastics did this and the Bollingers did that, BUT it is only in hindsight. These patterns form after the price action. They are no good in real time.

Friday's OpEx

After close analysis:

Got really bored and decided to trade. Took a couple of nice ones: tri bo (tribal... sounds like trading in reservations...hehe) and 6bo hitting auto... Today was OpEx, Friday, long weekend ahead, yada yada.... Most important thing is multi-day H&S broke to the downside with a retracement to neckline in afternoon. Not too many clues for next week cuz of opex but the H&S is the play for now. Either retracement to neckline or the triangles play out to the downside especially that everything is below ema.

Thought(s) of the day: Monday off (horray!)......

Market breadth had some interesting action today. Add and Addq opened higher than yesterday's range but had a tri breakdown in the morning and found support (as rosita mentioned an RR implying reversal/support) and had a mild rebound (saw that pattern before). That happened while Vold was in a very tight range for the day (prolly opex related).

Futures were mixed (grill). AB had a nice tri bo late morning after hitting emas (resistance) followed by 6bo. NQ and ES spent day forming triangles with apex acting as resistance. All were below emas. ES200R chart remains bearish w/ema as resistance.

Indices were in tight range all day. Sox & Smh after breaking H&S neckline formed a triangle all day. There might be a retracement to neckline on Tues. so apex should be watched closely. Dow Bones (hehe) fared much better and broke out of its tri and is around its ema @10780 area.

Overall positive day!

Break: day 4 (TD)

After close analysis:

Still on break but watched market for a while (why?). Yesterday's analysis pointed to a break and a move and that's what market got today. This was a TD with 1b-r & 2/6bo reaching auto on AB. The H&S on smh and sox was breached to downside. I should note again that such multi-day patterns when they bo in morning it's usually a trap (let the children play haha) and that's what exactly happened. The charts flipped to bearish so should be expecting a down day as a follow thru. Dow 10630-50 is major support area. What else? Yea, gurl had nice gann tart on es 3min, amazing how it works! Also nice webtite (hehe) for euro futs (works on IE and not firefox!).

Thought(s) of the day: Dow dbl top is a concern since the move up was fast. I prefer revisiting older levels at a slow pace with plenty of cnsld which gives it more fire power (these V moves just scare me...boo). The other thing is the divergence (oh no, not that word!... well, at least it isn't 'hidden' :P) between Naz and rest of market. Others have pointed out that market won't rally unless Naz participates. It's been weak lately.

Market breadth behaved as expected: after taking out yesterday's low it retraced in afternoon to bottom of range then continued lower. Vold low @660 with Add & Addq having -ve xovers.

Futures were bearish since open with AB, ES, and NQ staying below emas. There was a classic retrace in afternoon to ema setting up 1b-r. All charts including es 200R turned bearish.

Indices especially Smh & Sox gave early warning on what day was gonna look like. Trap in morning after breaking multi-day neckline (ouch...needs a brace!) retraced and broke down earlier than market. All below emas.

Overall neutral day!

Break: day 3

After close analysis:

Still on break. Nothing much happened today except for a 2/6bo setup on AB. 2 things to note: Internals were weaker than futs and indices which means market setting up for major move tomorrow. And 3-day H&S pattern on Smh/Sox.

Market breadth was clearly underperforming rest of market. Vold, Add, and Addq all were below previous day's range and had +ve xover. Vold warning of a major move tomorrow.

Futures led by AB: tried to poke thru multi-day apex and didn't get the job done. NQ spent day hovering around ema while ES had a minor bo above ema and established a new hi by a tad. ES 200R chart still bullish.

Indices mixed. Dow revisited recent hi and bumped against 10850 level forming a multi-week dbl top. Smh & Sox have H&S pattern and setting up for bo.

Overall neutral day!

Break: day 2 with an N

After close analysis:

Didn't trade. "N" pattern days were all over the place.

Market breadth held previous days' lows.

Futures were higher in morning before pulling back to emas then reversing to form "N". AB was much weaker than ES & NQ.

Indices held their ground with Sox & Smh having a weaker afternoon. Dow established a recent hi @10850. It'll need to clear area of 10850-75 to make all-time highs (oh geez, not again!...stop that...:P)

Overall neutral day!

Break: day 1

After close analysis:

Taking a 1-week break. AB was only game in town to play with 2 nice setups: 2/6b0 off NR then another 2bo later in the afternoon. Prolly market digesting Friday's move.

Market breadth was lower than previous day, other than that 'yawn'.

Futures in tight range all day (crapolla....). AB as usual offered couple of nice setups.

Indices didn't have anything to be talked about today, but I'm still posting tart.

Overall neutral day!

Anatomy

Two things I need to do before going on a break. First, I thought of posting a classic trade showing how a setup unfolds based on market analysis. This one is today's reversal trade later in the morning. The higher tfs give one an advantage of looking at bigger picture and not rushing into a trade (unlike ticky tacky scalpers :P). Second, as I promised roomies, 1bo-r setup where entry bar is highlighted by an arrow on tart 1, 2, 3, and 4. phewwww....... :P

Couple of other interesting tarts. This one is about a possible bo above apex and if it does watch out! The other one by Croatian Roll meister (hehe) who posted a nice & funny chart. (We'll need some shoes with that!)

Thought(s) of the minute: zzzzzzzzzzzzzzzzzzz.................

'W'rooomm: Upday on Friday

After close analysis:

Dragged my feet to trading desk today and was really lucky to walk away with couple of trades (ON A FRIDAY, someone call 911!)! Took an early short off 3min for crumbs then went long on what I consider one of the best confluences I've seen in a while. There was a nice 1bo-r (cont) then a 6bo later in the afternoon (for tracking purposes).

How about market today? Nice rally off critical support into critical resistance (aka subway sandwich hehe). I completely missed (attention shoppers: time for a break!) the multi-day support and that's where market found support in morning and reversed with a nice 3-day 'W' on 30m. The semis 'willed' the market to the upside with H&S failing and that's the story of the day. Where do we go from here? I like what the semis are doing but would like to see the Dow take out 10875 level. All charts are bullish, now let's have some follow-through especially that today was an inflection point in terms of time! Hubby back in town and taking a much needed break next week.

Thought(s) of the day: what's life worth without our loved ones?! I feel incomplete......

Market breadth was very +ve with almost no pullbacks once the rally took off later in the morning. Vold (hi @870) and Addq held yesterday's low before taking out yesterday's range and reversing up. Add did the same after a small dip below yesterday's low. All 3 have +ve xover.

Futures were followers today. Open was weak compared to indices with AB, NQ, and ES dipping before reversing. AB's low held at multi-day bo level and dbl bottom before rallying and in the process taking the 630 level (prior bo) and stopping (hi of day) at another bo level (636): that's the level to watch on AB. ES 200R chart is in bullish zone!

Indices very strong from the open. Sox & Smh found ema support right away and held before reversing and rallying & taking out the most recent daily hi. The H&S pattern failed and that was a signal for the market to reverse course. Dow did pretty much the same while recording a hi just shy of critical area (@10850-75). Watching possible dbl top (horse-shoe pattern) on Dow.

Overall positive day!

SOX: Put your head on my shoulder

After close analysis:

This was a strange day indeed- market wasn't in sync! I'll need to clarify the 1bo-r rules to roomies and post some tarts. Hmm, what else? Oh yea, made some wild predictions re Dow and the "witchhat" pattern (scary!). Took a short in the morning cuz futs looked weak and breadth although opening higher started reversing. Skipped couple of 1bo-r since didn't feel comfortable shorting with breadth drifting higher (should take the setups though). Another 2/6bo on the long side that worked out, then a meaningless ES long trade off the 15min (ES range needs serious counceling!). Overall analysis was good, and played it safe cuz there was plenty of resistance to the upside. Tomorrow I'll be watching the SMH &SOX: they're key especially if the H&S plays out to the downside.

Observation(s) of the day: ES and Dow moved to the upside. NQ, AB, didn't confirm. Again, breadth opened higher, drifted lower but found support @ yesterday's top of bo's range! Even breadth has patterns (something to watch).

Market breadth was neutral. Vold taking a stroll in the park (technical term for NR) till it whimped up in the afternoon but not by much: closed with a hi @311 . Add and Addq both opened higher, drifted lower before reversing to the upside. Minor +ve xovers on both. Continuation to upside tomorrow?

Futures were mixed. NQ & AB traded below their emas and found resistance @ ema after retracing morning down move. ES turned bullish later in the day and is above ema. ES 200R chart turned bullish after finding some ema support. All 3 retraced only 50% of yesterday's down move.

Indices were also mixed! Dow was a bulldog (too much cowfee hehe) and just had an up day making new hi for week @10750. Sox & Smh both found ema support in morning and formed what I see as a clear multi-day H&S with a neckline and a possible right shoulder. Will monitor tomorrow.

Overall positive day!

Caught in a trap: TD downday

After close analysis:

Interesting day where 'b'ahoo rooms were haunted with ghosts hehehe.... It was a TD type 1 and broke down after few days of NR (yucky) action. As I thought of yesterday, the ema on NQ daily acted as major resistance. CSCO nuuuz setup an early morning trap and as my gurl highlighted there were a bunch of messes (aka confluence) that stopped the market dead in its tracks on the upside. It came down to a pair of 2/6bo trades: 1 bo and the other continuation. Tomorrow should be interesting cuz the semis and dow's butts (technical term :P) are sitting on their emas. My plan is to trade from the short side but want to see how these 3 open tomorrow before committing.

Market breadth was -ve for sure but wasn't too severe compared to what happened to the futs. Vold's low as of close was @ -755. Add and Addq opened lower and took out previous day's range in the first 30m and down they went from there all day after the usually late morning/early noon retracement. The 3 flipped to -ve xover.

Futures were so weak today that the ES200R chart flipped to 'bearish' for the first time in so many days. All other futs including NQ, ES, and AB traded below their emas and setup classic TDs. AB's range for the day was 15.2pts (someone pinch me pls.!!)

Indices were in pullback mode. SMH, SOX, and Dow pulled back for the day and sitting on top of their emas. This is something I'll watch closely tomorrow cuz it's about the only thing that's making a case for a rebound to the upside.

Overall positive day!

'Sheesh'Co and a dull day

After close analysis:

Was out most of the day and didn't trade: I'm still on a break. Market was dull for sure and from the looks of it 'CSCO' earnings were weighing in (after close they dbl. their earnings in Q2). The semis were the stars of the show today. There were couple of setups: 1bo-r and 2/6bo where both should have yielded small losses (that's what happens in dull markets but setups should be taken no matter what). Market gearing up for a strong move and most likely tomorrow we should see better action and I should participate.

Market breadth was thin as a razor (ouch!) with Vold registering low/hi of -30/116 respectively! Addq & Add traded within yesterday's range, with Addq finding support @ yesterday's bo level.

Futures didn't do much. Twice, AB visited & held above its slow ema but had a range of 4.2pts (major diet). ES & NQ mirrored each other for the day and hovered around their emas as well. Should be noted that their close wasn't too bullish like other days. NQ is also up against its daily ema.

Indices were about the only bullish thing today. SMH & SOX gapped higher on the open and cnsld most of the day but clearly in an uptrend. Dow was dull and held at Friday's upper range with a hi @10744. There's nothing stopping the Dow from getting to 10850-70 area if the entire market moves in unison.

Overall neutral day!

'Bull'back

After close analysis:

Wasn't feeling too well today so will keep it short. Only 1 short trade which was a 2/6bo and that was it for the day! Will be interesting to see tomorrow if there's a follow through to the upside or more cnsld (dbl dip).

Market breadth was neutral with a slight downdraft for most of the day. This kind of action is usually associated with pullbacks especially after a strong move.

Futures were weak with ES & NQ penetrating their emas to the downside by early afternoon. AB penetrated both emas to the downside but retraced back.

Indices were stronger than futures. Dow held last Friday's upper range. SMH and SOX both retraced some of the recent gains but remained above ema.

Overall positive day!

Gold weekly going back to the 70s

Weekend blah!

Went over some charts just to see what's going on in other markets... Banks bullish and looks like the 70ema works well as S/R; Brokers held above their ema; but the Euro and Gold are falling off a ledge on the daily while ema is acting as resistance... I see more downside there based on daily charts. How about the W pattern on 30yr bonds weekly? Seems more upside and rates going further down... Regarding stock indices, I'd have preferred if the move up again was kind of slower - need to keep an eye on whether this is just a fake move up or will backfill and have a nice cnsld before taking off...

dbq's 6bo on euro chart looks very interesting and might warrant some backtesting. Also the 30m 2bo morning trade has potential: After eyeballing it, it gave since beginning of 2005 10/10 stat. Now need to figure out exits and stops, but looks like it'll be an auto just to simplify. The rules on this setup have slightly changed with entering on bo of 2nd bar -or+ 1 tick depending on direction.

Thought of the day: I like how the room is interacting and coming up w/new ideas: a nice example is dbq's application of 6b0 on euro. Now off to do some house chores and other stuff.

May the 'real move' rise!

After close analysis:

Been away from trading desk for 2nd day now and already miss my roomies ... Wow, this was a nice old-fashioned TD in the market: basically everything rallied in unison (any conductor around? hehe) after sort of indecision day yesterday following FOMC announcement on Tues. I expect some backfilling to take place next week.

Observation(s) of day: ES 200R chart 'sloping pattern' continues to play out especially after holding ema! This pattern is such a powerful basing one.

Market breadth was relatively strong with Vold scoring a hi of 872 with less than 1/2 of that in the final 90 min. (and on a Friday, go figure!). Would have liked to see it reach 1000 but the levels taken out today by the indices confirmed more upside in the making. Add and Addq opened higher than previous 2 days and stayed up: All 3 with +ve xovers and nice bo @ 2 (after cnsld) and 3:30pm (cont.).

Futures were bullish all day especially the ES 200R pattern which continues to impress. ES, NQ, and AB all reallied and had a classic TD type 1 day and all above their emas. AB's bo levels for the day were 634.5 and 636.5.

Indices were extremely +ve today with SMH & SOX crossing their emas and taking out few days' worth of levels. I see it as a precursor for more upside to come. Dow took out the 10650 level with ease and is @10725 area right now which should be interesting and a good confirmation of another strong move. I wouldn't be surprised if at some point in the medium term the Dow made an all-time hi (oh shucks did I have to say that!! haha)...

Overall neutral day!

NR: The Day after

After close analysis:

Will be busy next couple of days so didn't trade today. Looks like I didn't miss much since it was NR action and a wash on AB for the day following FOMC yesterday. Markets were mixed today but with a cnsld tone. There was one 2/6bo setup on AB which didn't reach its auto target, and another 2bo late in the day, but that was about it (yawn).

Thought(s) of the day: I really should get more sleep. Put together for roomies (not homies hehehe) a spreadsheet for backtesting 3 AB setups since beginning of 2005: can't complain since my results were close to 2 of these setups - really need to start following that 1-3mtb exit (is that on the I-5?). The 60m or 2bo in the morning caught my attention and looks like a valid setup too... wow, up to 4 setups on AB... coolamente! My gurl and I messed around w/'T'ahoo rooms and I really wanna dump that 'mirc'ury yikers.

Market breadth was -ve with Vold, Add, and Addq opening lower than previous day and was -ve in morning but improved later on. Although it's considered a down day but Vold's low reading of -438 means not too much thrust to the downside.

Futures were mixed: ES and AB held their ground while NQ finished below its ema for the day. AB with NR of 5.8pts. (!!) which implies a bo coming soon. ES's R200 sloping pattern still implies more upside and found support today on the ema (hmm).

Indices were lower. Dow looks like in a pullback mode and held above the emas, while SMH & SOX were decisively below their emas. Tomorrow will be an interesting scenario since today was an NR on most indices.

Overall neutral day!

FOMC , getting D Z

After close analysis:

Mr. Greenie was supposed to tell us something today and he did (.25 hike). Market languished in the morning with no real movement. 'dbq' even noticed some bars were 1 tick lol... After announcement market took off to the upside and there was a 6bo setup on AB, then down, then UP (are you getting dizzy yet!). Only 1 trade on a 1bar reversal off ema (few peanuts but better than nothing). I did very well sticking to rules (no trading till 45min after FOMC) and to overall market direction: long side. That's more important than what I made! Usually market will make a major move ala TD, a day or 2 following FOMC. Let's see what happens!

Interesting ema from FL on AB 3min. chart, maybe can add? will see... and how about that euro that rosie keeps jumping on?

Observation(s) of day: Addq hit bottom of yesterday's bo range and stalled upward movement in the morning. How about fast ema support on AB? Amazing!

Market breadth opened lower than previous day with Addq and Add hitting yesterday's bo lower range as resistance. After FOMC Vold and others picked up and closed in +ve uptrend. Vold closed lower than previous couple of days @516.

Futures were a snoozer for sure early in the day. Someone in room mentioned 'trader trance' (hehe)... After FOMC and a little bit of chop, the emas held and breadth picked up on the long side...vrooommm... NQ broke down and retraced back to ema, that's about the only -ve in the market today. AB found solid support on faster ema with nice reversal bars for hi % long entries. ES breached ema only to close above it for the day. So there you have it for all 3.

Indices were mixed. Dow seemed to be on a mission and breezed through 10550 area to 10620 area. I bet that the market reversed to upside on SOX and SMH ema support!

Overall positive day!

TD or not to TD

After close analysis:

They say volume preceeds price. Yesterday's analysis pointed to a TD today and sure enough we got it going on some of the indices; SOX & SMH pointed to the right direction. Also the sloping base pattern on 'Range chart' came through and finally broke out - thing of a beauty! After some hesitation in morning the market took off. Got shaken out in morning and dumped couple of cars for a quick profit while held the 3rd a little longer (thank God!). Oh well, so some days go like this. Afternoon was ok with a reversal bar coinciding with 2bo for a quick scalp (long) since NQ didn't confirm. Watching how NQ behaves is key especially on bo setups. FOMC tomorrow!! And I'm expecting some chop.

Thought of the day: would like to start trading euro and 10yr Notes. Room can't get exchange fees right although we're a bunch of geeks (yawn!)

Market breadth was positive! One observation should be noted that add & addq opened lower than previous day and sure enough resistance point was the low of yesterday's bo range. VOLD was +ve all day but with less volume than previous day.

Futures were a mixed bag almost reverse of yesterday. AB and NQ didn't do much really. AB reallied early in morning then chopped rest of day for a good reason - NQ didn't confirm the upmove. ES sure was the star of the show and had a classic TD. All futs maintained their position >emas.

Indices standouts were SOX and SMH for sure. Both after gapping up on open retraced to yesterday's breakdown levels and then went up for rest of day. Dow hit 10550 area and will need to take that out decisively to move to the next critical area @ 10650. Market won't go anywhere until dow clears those 2 areas with conviction.

Overall positive day!