Title: Why I Gave You A License to Print Money Today So, how should you have used my posted commentary above (posted well in advance of the market open) to make money today for at least 2 hours? I've attached a 5 min chart, edited to remove various Angle lines, leaving only those levels I discussed today, and one I mentioned over the weekend. The Angle lines would have told you precisely when to get in, but I'll leave that for another day. Here is the basic stuff I can talk about for now. 1) I told you that 120 12 and 119 21 were important for today. 2) Over the weekend, I told you that 119 28 was not only a WGSR, but that it also had come up quite a bit in various market geometry studies I spent several hours working on over the weekend. 3) I told you that two short term times are 0604 and 0804. 4) I told you that 1 longer term (1 hour chart) time was 0630. At 0604 I draw a horizontal line at 120 14 (not on this chart). 120 14 is now a significant level. We never get above it by more than 1 tick. At 0629, I know that my hour bar is about to conclude. I know that something fairly significant could/should happen. My NN ratio studies are negative. I go short at point A. What do I know so far? I have a possible 11/2 hour move on my hands based on the hour chart and I have a possible 2/2 hour move on my hands based on the shorter time frame. My first target is 119 28 (point B) followed by my new target of 119 21 (point C). On a side note, from last week, I even know that 119 08 is possible as well (point D). Conclusion? I should not scalp this trade under any circumstances. I should hold out for a minimum of a test of 119 28 which would be 16 ticks. Net 16 ticks on a single trade within a 1 hour window is an excellent trade in anyone's book.
OK, that is it for me. Absolutely no need to continue today. I don't know how much longer these large range days will last but you should be netting significantly more than usual now during this time period. In the ZB that is. On an embarrassing note (just so you know I'm not getting a big head), I went ahead and took a loss in SKF. I had a low print from last week at 105.05, so I decided that would be my visual stop. I got out just as we broke 105.00. Holding on ranks as one of the dumbest trades I've ever made, and I'm sorry to have ever mentioned it on here.
25 Mar 2008 0428 CST Observations on the hourly ZB chart. No need to go into cycles as they have already occurred for the day. The two levels for today are: 118 17 118 06 Of course, all previously mentioned levels are important as well as we approach them. Just glance at the chart and see which ones seemed to attract/hold price more. On the 5 min, I count a cycle of 95 five min bars. The single level thus far for today is 118 13, and we should have the next cycle at 0655 on the 5 min. I need to do a few calculations to confirm. That is it for now. The hourly figures are the first two. The five minute level is only 118 13 for now.
Are you ready to call it a day yet? How have I done so far? You shouldn't have to look at this chart but here it is just in case. Please note that 118 24 is a very important WGSR from 14 Mar 2008, but you certainly did not need to know that to net two back to back trades of at least 6 ticks. A long at 118 13 and another long at 118 17 or 118 18.
Update 0634 CST I just have a few more minutes before the next important time. I'm giving it a window of 0650 to 0700, with 0655 being the probable time.
I don't really discuss Gann much, but I'd like to point out that I made the above call based on a couple of Gann angles I drew back approximately 1 week ago. The trade from 118 13 could easily have lasted until price moved to the next Gann line which was roughly 118 28.
Update 0657 CST The final level for the 5 min chart is: 119 00 (+ or - 1 tick) This is a cycle inflection point AND a WGSR.
Wed 26 Mar 2008 0431 CST Price level based on 5 min chart: 118 25 118 19 One hour chart: 119 08 Also, anyone who paid attention yesterday made a quick 10 to 12 ticks buying at 118 18 between 0019 and 0044 hours today. If you missed that you had another opportunity to buy at 118 24 as well. Be prepared, the easy money won't last.