Trade Technicals
What a week!!!
The S&P500 has broken 1460 and which was our downside target and taken out its 200-day moving average, a technical measure tracked by many institutions, not a good sign for the bulls. I guess now the only question that remains is will 1440 hold and delivery a nice Santa clause rally into December/January or are we about to start a very ugly bear market?
It seams as the days role on we are getting more and more news about this credit disaster led by the sub-prime issue and how it is impacting the financial markets. Who would have guessed E*Trade would be under pressure. What a twist. Although E*Trades main business is online investing, the company also runs a bank that deals in making and buying mortgage loans, as well as invests in securities backed by mortgages. The company warned in a filing on Friday that problems with these investments would lead to bigger-than-expected losses. The real concern here is that the fallout from exposure to high-risk mortgages has begun hurting companies that initially wouldnt seem vulnerable to the sub-prime problem.
Be ready for a potential bottom around the 1435-to-1455 range, followed by a nice rally to test 1500 again. That scenario fits in nicely with our seasonal play of a rally into December.
Tradewinr: Weekly Performance
Another profitable week for the Tradewinr.com Portfolio!
| Markets Traded | Weekly Points/PIPS | Weekly Profit/Loss | Monthly Profit/Loss |
| The Dow Daily prediction | 1384 Pts | $13,840 | $20,540 |
| S&P500 Swing trade | 26.8ts | -$1,340 | $1,185 |
| The Dax Swing trade | 144pts | $5,904 | $3,936 |
| S&P500 Intraday | 43pts | $2,150 | $2,250 |
| EUR/USD | 95 pips | $950 | $950 |
| Delta Option Spread | | Open trade $800 | $800 |
| Weekly Total | | | $29,661 |
| *S&P Profit Finder system testing | | $58,262 | $61,512 |
*Note - S&P Profit Finder is currently being tested on Collective2.com. Please note that this is a very aggressive swing trading system that has had large drawdowns in its testing period. We are currently looking to reduce the size of stops to ensure that our drawdowns are more acceptable. We thought you may like to track its progress on our blog.
Market Summary
Surprise, Surprise a 61.8% retracement and then a sell-off after the rate cut on Wednesday.
The perfect ABC set up is unfolding and we now have a double bottom in place at 1495.5 with a market close at 1517. So where to next!! Key targets to look out for if this market can get through 1500 hundred again are 1480 and 1460.
If you are a Tradewinr member you would be sitting on some nice little profits from an entry at 1542 with profits at 1514, 1501.
My rant for the week:
Things could get very ugly very quickly!
The Fed again seems to be having very little impact on the markets. I wonder why that is.
Oil nearing $100 per barrel, major banks and brokerage companies are starting to declare their true losses, what other little surprises are around the corner.
The week ahead should present some fantastic trading opportunities for our systems.
Market Snapshot:
Volatility continues for this market. While the Fed cut rates we saw an immediate market reaction to the upside however the honeymoon was short lived and then the reality of the day-today doldrums set in for our financial markets. With an impressive sell-off kicking into gear that saw the Dow lose over 300 points on Thursday.
Tradewinr: Weekly Performance
Another profitable week for the Tradewinr.com Portfolio.
| Markets Traded | Weekly Points/PIPS | Weekly Profit/Loss | Monthly Profit/Loss |
| The Dow Daily prediction | 972 Pts | $9720 | $6720 |
| S&P500 Swing trade | 43.75pts | $2187.50 | $2525 |
| The Dax Swing trade | -7pts | ($287) | ($1968) |
| S&P500 Intraday | -24pts | ($1200) | $100 |
| EUR/USD | 29 pips | $290 | $0 |
| Option Delta spread | | Open trade $-600 | $-600 |
| Weekly Total | | $10,110.50 | $6777 |
| *S&P Profit Finder – system testing | | $3250 | $3250 |
*Note: S&P Profit Finder is currently being tested on Collective2.com. Please note that this is a very aggressive swing trading system that has had large drawdowns in its testing period. We are currently looking to reduce the size of stops to ensure that our drawdowns are more acceptable. We thought you may like to track its progress on our blog.
