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There is a lot of conjecture about when this market is going to stop going
up and all sorts of talk/plans to get short. Attached is a chart of the S&P
futures that really contains all the info one would ever need to formulate
a simple trading plan, courtesy of the market itself.
The trend is up as a quick glance at the moving avgs. shows (50 and 21 day
simple - the colors are more important than the length, just be consistent
with the length of your choice). Also, the pivots/swings are holding with
the one exception being the head fake of the break of the 11/24 swing low
with the break quickly being retraced.
A possible way to trade the S&P would be to sell the break of the next
swing low that is formed with a stop above either above the high of the day
of entry, or above the previous swing high, depending on one's risk
parameters.
Same concept could be applied to the NDX, or any other market for that
matter.
I bet this thing could actually be made into a COMPUTER PROGRAM with secret
code!
Happy New Year!!
Tom Alexander
Attachment Converted: "f:\eudora\attach\s&p pivot.gif"
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