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M. Simms wrote--
"What's his methodology?..."
Here's a summary as I've picked it up-but I'm sure this is not all the
story.
Lewis Borsellino publishes jos market calls on his own website ( www.
teachtrade.com ) and twice daily (920 and 115 Eastern) on
www.tradingmarkets.com ( a for-fee site). On the latter he recently
published a course on his methods. The course was good but left one
hankering for more. i conclude he doesn't want to give away the whole
thing.
Pivotal Area--most days he publishes a Pivotal Area--a band of prices,
usually not far from the closing range (approx 30 min) of the day before. He
uses this (see below) for the first 90 minutes or so. But he does not and
will not via email questions divulge how this proprietary band is
determined. From context I think it is some combo of moving averages and
prcies where there is a lot of prior activity--maybe areas of congestion,
hesitation. I assume something like Market Profile would reveal this as
well.
Resistance and Support--Each day he publishes 4-8 resistance levels and 4-8
support levels. He treats them as both resistance (support) and targets.
E.g., price will get resistance at 1355.5; if it takes out that #, look for
1360. These SR number seem to be a combo of Fib levels and activity levels.
Price behavior--in his course he emphasizes observing how price behaves at
key levels--congestion, move thru, retrace etc.
Opening range behavior--he emphasizes close observation of the opening range
(~first 15-30 minutes) as a clue to the rest of the day.
Trading stance--abovethe PA he tends to be a buyer of dips, below a seller
of rallies.
He has offices at the CME and people on thefloor. He says he goes back and
forth and talks frequently of the number of peole in the pit, level of
noise/action, big player actions and at what price levels.
www.tradingmarkets.com offer a 3 day trial. It is well worth the time to
join and print out the various courses they have published over the last few
years.
Original Message -----
From: "M. Simms" <prosys@xxxxxxxxxxxxxxxx>
To: "Jim Johnson" <jejohn@xxxxxxxxx>
Sent: Friday, October 27, 2000 9:08 PM
Subject: RE: Limit Down Bounce--Borsellino
> What's his methodology ? How does he make his calls ?
>
> Strictly "seat-of-the-pants" or what ?
>
> I've always wondered exactly HOW MUCH the pit guys have as an advantage
over
> us workstation guys .....
> I am beginning to think it is a lot.
>
>
> > -----Original Message-----
> > From: Jim Johnson [mailto:jejohn@xxxxxxxxx]
> > Sent: Friday, October 27, 2000 8:25 AM
> > To: prosys@xxxxxxxxxxxxxxxx; omegalist
> > Subject: Re: Limit Down Bounce--Borsellino
> >
> >
> > I've been following Borsellino since he joined the TradingMarkets site
> > several months ago. His calls get one's attention. For example,
> > yesterday
> > at 11:45 Eastern he posted:
> > "Now that I am off my soapbox, I'll give you my forecast for the
> > rest of the
> > session. Watch for a final-hour rally in both the NDZ and the SPZ. If
this
> > fails to occur, the SPZ should trade towards the 1280 level over the
next
> > couple of sessions. If the SPZ can get above the 1375 level today, go
with
> > it and look for the session highs to be taken out."
> >
> > I don't know if he makes any money but many of his calls are great. His
> > free webdsite is www.teachtrade.com.
> >
> >
> >
> > ----- Original Message -----
> > From: "M. Simms" <prosys@xxxxxxxxxxxxxxxx>
> > To: <KIMBOLEGSA@xxxxxxx>; <gm@xxxxxxxxxxxxx>
> > Cc: "Omega-list" <omega-list@xxxxxxxxxx>
> > Sent: Thursday, October 26, 2000 11:16 PM
> > Subject: RE: Limit Down Bounce
> >
> >
> > > 1) where exactly did that story originate...a book, an article, an
> > interview
> > > ?
> > >
> > > 2) does anyone know what Borsellino makes annually ?
> > >
> > > > -----Original Message-----
> > > > From: KIMBOLEGSA@xxxxxxx [mailto:KIMBOLEGSA@xxxxxxx]
> > > > Sent: Thursday, October 26, 2000 8:55 PM
> > > > To: gm@xxxxxxxxxxxxx
> > > > Cc: Omega-list
> > > > Subject: Re: Limit Down Bounce
> > > >
> > > >
> > > > In a message dated 10/26/2000 11:02:44 AM Central Daylight Time,
> > > > gm@xxxxxxxxxxxxx writes:
> > > >
> > > > << Now, having written that, I'm ready for anyone's war story
> > > > that proves me
> > > > wrong - how a trader made a million $ in a couple of minutes
> > in a limit
> > > > market.
> > > > >>
> > > >
> > > > Gerald,
> > > >
> > > > There were no limits in 1987 but I believe Lewis Borsellino did
> > > > achieve the
> > > > feat you describe in less than 1 minute. The words that follow
> > > > are his - not
> > > > mine:
> > > >
> > > > "I've told this story dozens of time, but the memory has never
> > > > ceased to have
> > > > an impact on me. I was out of the country on Black Monday of the
Crash
> > of
> > > > 1987. In fact, I wasn't able to get back to the trading pit until
> > Tuesday
> > > > afternoon (even though I flew standby on the Concorde). I made
> > six-figure
> > > > profits on Tuesday afternoon and Wednesday. But that all paled in
> > > > comparison
> > > > to what happened on Thursday.
> > > >
> > > > Before trading began, the pit was tense. The brokers, I noticed,
were
> > > > especially nervous. Having been a broker in my early days, I
> > > > could read their
> > > > body language clearly. They were acting as if they had a large
> > > > order to fill.
> > > > Just before the bell rings, brokers start to make their
> > offers. A broker
> > > > offered to sell S&Ps 4.00 points lower. (In the pit we'd think of
> > > > that as 400
> > > > points lower.) Then another broker, this time from Shearson,
> > said he was
> > > > 10.00 lower. (Remember this was 1987, and we didn't have any
> > > > limits to act as
> > > > brakes on a sharply falling market.) This was unbelievable, I
> > > > thought! Within
> > > > seconds we were already 10.00 points down. As a local, I wondered
> > > > just how
> > > > far down this market would go.
> > > >
> > > > "I'm 20.00 lower," I yelled out.
> > > >
> > > > A Shearson broker was lower still - 30.00 points lower. I said I
> > > > was 40.00
> > > > points lower. The Shearson broker shot back that he was 50.00 lower.
> > > >
> > > > S&Ps opened 56.00 points lower. In the midst of this freefall, I
> > > > knew it had
> > > > to be the bottom. I turned buyer. I bought 150 contracts from a
> > > > broker behind
> > > > me and sold them two seconds later for 20.00 points higher. I
> > > > walked out of
> > > > the pit with a $1.3 million profit made in less than a minute. I
> > > > went into
> > > > the bathroom and threw up. As much as I had made on that one
> > > > trade, I could
> > > > have lost if the market had turned against me."
> > > >
> > > > Rgds,
> > > >
> > > > Kim
> > > >
> > > >
> > >
> > >
> >
> >
>
>
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