November 10, 2005: B/O

As mentioned in last post, b/o was upon us and it sure did take place... now ES is out of the woods and should challenge prior highs around 1250...Dow is stopped for the day at critical level 10650 and once past that I expect all-time highs (say what???)... I'd like to see a follow-thru to the upside to take the markets past these resistance levels and maybe a pullback to these levels would be good for continuation.... Only thing I didn't like is volume... still low despite the upward action..


Today was tricky and required plenty of patience... even though ER bottomed early in the day and kept going up it was still below 50ma, so was breadth... so no longs despite the cnsld b/o... only longs taken were late in the day.... there was a setup but didn't give much reward (10ticks)...I like to have around 20 ticks and more as target the 2nd setup didn't reach its target but one should've been ok if stuck to rules... playing it safe is name of game :)... the reason I post YM is that trades can be taken there w/same rules that apply to ER, so this session was perfect to trade the long side on YM instead of ER....



I'm posting this chart of NAZ weekly to show the support on short and intermediate-term basis then the b/o to the upside.... those emas, once one scrolls back in time, have proved to provide an accurate direction in terms of the three timeframes....this market is waiting to explode!!