Monday, March 20, 2006

Traders Helping Traders Big Weekend Edition - Part Two

Tom's Trades By R. Thomas Logé

This has been one of the most hectic weeks I can remember … but then again, the memory is covering shorter and shorter time frames. We put in a nice trading week. S&R did an outstanding job of identifying launch points for us. The real key though was how many of the trades we did were helped by S&R making the management tasks so incredibly visible to us. Isn't it so much easier when something so competent is telling us what to do and when to do it.

TRADE REVIEW

JUNE TBonds
You couldn't give me just a couple of more ticks higher on the open, huh? We saw a nice little run down to 110-31 but no way to get any of it. I almost jumped in at -08 but that would have violated my -00/-16 first rule. Looks like all we'd gotten out of it would have been a B/E anyway. A long winded way to say we got skunked for the day.

JUNE Canadian $
You'll recall on Wednesday I added 8700 and 8680 to the mix. Today I sold 8675 at about 10 minutes to 8. I exited the trade at 8642 employing a "once broken" play for $330. I then bought 8643 and rode it back to 8653 for another $100. I did a buy at 8665 and got out at B/E. I sold 8657 for a B/E. I gave it up after that.

JUNE Swiss Franc
I bought 7807 and exited at 7835 for $350. I tried to sell the break of 7800 earlier but luckily didn't get filled. From there, the SF pretty much slipped into a coma. Done here.

JUNE 06 Mini Russell
After the open half scared me to death I tried to grab one on the spike down to 746.50 to no avail. I finally got a sell at 749.40 and exited at 748.40 for $100. Playin' a little cautious and respecting the upward potential. That was it for the day. Buys above 750 are still off limits.

JUNE Mini
Dow Nothing for us at these levels.

MAY Corn
Friday dawned with our short trade still intact. We continued working to lower levels right from the RTH open. 2.23/.22 is a strong support area we pushed right thru. At that point I rolled my stop to 2.23 ¼. As we approached end of day I needed to make a decision. I would not quarrel with anyone deciding to keep this short trade open thru the weekend. I gave it serious thought. In the end I couldn't bring myself to do it. I exited at 2.21 banking 7 cents, $350.

MAY Wheat
I bought 3.55 ¼ and was stopped out at 3.56 ½ for $62. I thought I should have done better but not sure how after I looked at it later.

NEW TRADES

JUNE 06 Mini Russell We are up near/at contract highs so our trading will be limited for awhile to sells only. We need to get below 744 in order to "green light" any buy. Here are the numbers currently in play:

750, 746, 744, 742, 740, 737, 735, 732, 730, 728, 725, 722, 720, 718, 715, 712, 710, 697, 692, 687, 685 and 680.

JUNE Mini Dow Just like the Russell, we are at contract highs … in fact 5 year highs. It'll be slow going and likely few trades for a while. Here are the current numbers in play:

11360, 11225, 11200, 11085, 11175, 11150, 11120, 11100, 11080, 11050, 11030, 11000, 10980, 10950, 10925, 10900, 10850, 10835, 10800 and 10750.

We'll add more in the Daily Updates as numbers take on significance. Sells only off 11360, 11225 and 11200. We need to be patient. Understand the structure WILL build and we'll have lots of opportunities down the road.

APRIL Gold Friday's close at 555.10 puts us squarely in the center of the current $10 channel. Play 550/560 on Monday in the usual manner. 555 is a very significant S&R level and I will play it Monday given the chance. We'll either buy the break above or sell the break lower. The stop for the buy is 554.30 and 555.70 on the sell. Get it to B/E on a break above 556 or below 554. The target is anything below 551.50 on the sell and anything above 558.50 on the buy.

For more juicy detail, the famous Wednesday Night Webinars and all the rest of the markets covered, you'll have to join our tech analysis family! Go to http://www.supportandresistance.com/subscribe.html and get your trades hot, fresh and BEFORE the markets open.

That's it for this edition. If you haven't yet attended one of the Wednesday Night Webinars I strongly suggest you try to work your schedule to make it possible. These sessions are so important to getting a feel for what Erich and I do. Your participation is so important to us. It is a great way to keep us in touch and provide us with feedback that always adds something to what we do.

Also, I want to encourage you all to post questions, trades, issues at the Forum. Lots of great information there and it's yours for the taking.

-Tom