Friday, August 17, 2007

New Plan for Freaky Friday, Aug 17, 2007

Helicopter Ben and the PPT to the rescue ...... again.

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Ok, forget about anything that I said yesterday.
Nothing I said yesterday will apply to today's market action.

I'm not sure how to deal with monster gap ups created by the PPT. ES gapped up above 5 key resistance levels as soon as Helicopter Ben laid the smackdown on the markets with the 50basis point drop of the Fed Funds rate. Premarket has fortunately settled down a bit more, and is now "only" +28pts above yesterday's close (as I type). Premarket range was from 1400 up to 1470, for a nice +70pt range. I wonder what Dr. Brett has to say about that.

But I know it will be volatile today, on the way and up and down. The best plan is to keep things simple. I will put on my scalping hat.

2pt targets, 2pt stops. I learned this from MNT. Wait for a trend to clearly establish itself, and enter off the 23.6% Fib RT. Or, if I am alert enough, wait for a break of trend, or a reversal off a confirmed double bottom/double top. This will probably mean letting the first run go just to get a feel for things. Hopefully the first run is not the best run for the day.

I attempt to post my trades live on Wallstreak.


John Forman said...

The Fed cut the Discount Rate, not the Fed Funds target rate.

Phileo said...

Hi John,

You are correct, thanks for pointing that out....