Trading Advisory Newsletter (September 02, 2008)

Stock Trading Advisory Newsletter is provided by tradestalker.com.

.................................................

TradeStalker's

R.B.I. Trader's Update

09 / 2 / 2008

Intraday Update

...............................................


Dateline: 10:16 eastern time, es8u= 1299.5 nq8u= 1906.5

The 1302.50-1303.50 area has turnd the market back and now the 1296.50-1296.00 area will need to hold to keep the market out of trouble. It will take a break and hold over 1303.50 to avoid a move towards that area this morning.

Good trading,
Mike

.................................................

TradeStalker's

R.B.I. Trader's Update

09 / 2 / 2008

Intraday Update # 2

...............................................


Dateline: 10:38 eastern time, es8u= 1296 nq8u= 1902

The ES barely broke 1296.00 and the NQ turned up from 1900 however the 1290.50-1289.75 area could be seen on this leg down. That would be key if reached. A break of that zone would put the market back in down trends.

Good trading,
Mike

.................................................

TradeStalker's

R.B.I. Trader's Update

09 / 2 / 2008

Intraday Update # 3

...............................................


Dateline: 12:02 eastern time, es8u= 1293.5 nq8u= 1892

After the last update the ES pulled back to 1291.50, a point above key support, and bounced back to 1296.75.
The bounces aren't sticking, so bounces are shorting opportunities down to the 1290.50-1289.75 area. If that breaks, then 1286.00-1285.50 would be next.

Good trading,
Mike

.................................................

TradeStalker's

R.B.I. Trader's Update

09 / 2 / 2008

Intraday Update # 4

...............................................


Dateline: 12:42 eastern time, es8u= 1285.5 nq8u= 1879

The ES reached our 1286.00-1285.50 zone easily. The 1281.50 level must not be broken or we'll have an outside day on the downside. Gap days are often times trend days so stay with the short side. The 1292.00- 1292.50 area is good resistance now.

Good trading,
Mike

.................................................

TradeStalker's

R.B.I. Trader's Update

09 / 2 / 2008

Intraday Update # 5

...............................................


Dateline: 1:58 eastern time, es8u= 1279.5 nq8u= 1856.5

The 1281.50 level was easily broken and the market action is ugly for the bulls. The 1277.00-1276.50 zone on the ES is the last good support in front of a drop towards the 1273.00-1272.50 zone. It will take a bounce of more than 5.50 points on the ES to dent the trend-down move.

Good trading,
Mike

.................................................

TradeStalker's

R.B.I. Trader's Update

09 / 2 / 2008

Intraday Update # 6

...............................................


Dateline: 2:38 eastern time, es8u= 1277.5 nq8u= 1853

The 1277.00-1276.50 zone was broken by half of a point and turned up. However, the 1281.50-1282.00 area must be cleared, and not quickly reversed, to change the trend-down pace.

Good trading,
Mike

.................................................

TradeStalker's

R.B.I. Trader's Update

09 / 2 / 2008

Intraday Update # 7

...............................................


Dateline: 3:10 eastern time, es8u= 1274.5 nq8u= 1852

The low should be made in the last 15-20 minutes of trading if this going to act like most trend days.
It now will take a move over the 1277.00-1277.50 area to change the structure of this leg down. If that happens then the lows will likely be in place for today.

Good trading,
Mike

.................................................

TradeStalker's

R.B.I. Trader's Update

9 / 1 / 2008

(Published Since 1996)

...............................................


Dateline: 5:11 pm eastern time, 9/1/2008


After getting short on the Nasdaq on Thursday afternoon, the market gave us a big down open on Friday. The market bounced back to the Thursday closes and then reversed and resumed the downtrends. Shortly after noon the SP futures reached 1284.00 while the Nasdaq futures found a bottom at 1867.50 and then an early afternoon bounce followed. The SP futures made it to 1291.75 while the Nasdaq futures reached 1885.25 with about 90 minutes left in the trading day. A 1-2-3 top formed on the SP futures and the market rolled over again and sold off into the close. The SP futures made its low in the 1281.50-1281.00 zone while the Nasdaq futures made a higher low at 1870.50. While the cash indexes closed on their lows, the futures firmed up a bit into the close.

The sideways trading range on the SP and Dow is being tested on both sides. This pattern is usually a bearish pattern.
The 1266 level on the SP500 cash needs to be broken before a sustainable move occurs on the downside. On the upside, the SP500 will need to get over 1300 and not quickly reverse to get a move going on the upside.

The market is just a day off of extremes on my internal gauges and sentiment looks like it might overshoot on the bearish side soon. On Tuesday, look for shorting opportunities on a bounce that fails near the initial resistance zones. It will take a break and hold over that resistance to get the market out of the trouble it is in at the moment. A quick trade on the long side would set up if there is a lower open that reverses, but if this occurs then be prepared to cover and get short when the first bounce fizzles.

The first hurdles are at the 1285.00-1285.75 area on the SP futures and the 1880.50-1881.25 area on the Nasdaq futures.
The next resistance is at the 1291.25-1292.00 area on the SP futures and the 1888.00-1889.00 area on the Nasdaq futures. It would take a break over those areas that doesn't quickly reverse to get out of danger short term. If the market gets up there and doesn't reverse, then a pop towards the 1298.00-1298.75 area on the SP futures and the 1901.50-
1903.25 area on the Nasdaq futures is likely. If the market gets up there and isn't rejected, then a pop to the 1302.50- 1303.50 area on the SP futures and/or the 1915.50-1916.50 area on the Nasdaq futures is possible before a reversal. If there is no reversal, then a short squeeze could push the SP futures towards the 1307.50-1308.00 area.

The initial support is at the 1281.50-1281.00 area on the SP futures and the 1871.00-1870.50 area on the Nasdaq futures.
If those areas are not defended, then the key support should be at the 1277.00-1276.50 area on the SP futures and the 1865.50-1864.50 area on the Nasdaq futures. If the market cannot reverse from those areas, then a spill towards the 1273.00-1272.50 area on the SP futures and the 1858.50-
1857.25 area on the Nasdaq futures is likely. If the market cannot hold those areas, then the 1266 level on the SP500 cash (especially on a close) must be reversed to avoid a panic selloff and potential crashette type dive lower.



September 2008 SP futures resistance
symbols: emini = esu8 / big contract =spu8

1285.00-1285.75
1291.25-1292.00
1298.00-1298.75
1302.50-1303.50
1307.50-1308.00


September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8

1281.50-1281.00
1277.00-1276.50
1273.00-1272.50
1266 {SP500 cash}


September 2008 Nasdaq futures resistance
symbols: emini = nqu8 / big contract = ndu8

1880.50-1881.25
1888.00-1889.00
1901.50-1903.25
1915.50-1916.50


September 2008 Nasdaq futures support
symbols: emini = nqu8 / big contract = ndu8

1870.00-1869.50
1865.50-1864.50
1858.50-1857.25


September 2008 Dow futures resistance
symbols: emini = ymu8

11583-11587
11621-11624
11692-11697
11726-11731


September 2008 Dow futures support
symbols: emini = ymu8

11521-11517
11465-11462
11421-11417


September 2008 Russell futures resistance
symbols: emini = er2u8 / big contract = er2u8

738.90-739.30
742.10-742.50
746.10-746.50
750.30-750.60


September 2008 Russell futures support
symbols: emini = er2u8 / big contract = er2u8

736.50-736.10
733.80-733.40
728.60-727.50
 

---------------------------


Real Time subscribers can view these updates on the web at this site:

http://www.tradestalker.com/members

HOW THE DAY WENT: We had an unexpected gap up open this morning, and anyone who knows my work knows I love to "fade" emotional extremes. Not only that, we had a great pattern for a shorting opportunity too boot! The last big resistance was at the 1302.50-1303.50 zone, and the ES made a 1303.50 high. After a small pullback the ES popped to a lower high at 1302.50 and reversed. That 123 top started a trend down move that lasted until the last hour.  The intraday updates kept members on the right side of the market as the early rally was unwound and sold off 32.00 points on the SP500 Futures (symbol ES U8) and 71.50 points on the Nasdaq futures (NQ U8) from their early highs by 3pm eastern time. Our group had a very good day. I never get tired of getting emails like this one today:

"great calls today -- nice work! I always admire the way you keep an open mind to update your thinking from the night's take before in your newsletter. Flexibility within a framework of context is certainly the name of the game.
You are a master at your craft -- keep it up as always.


Members have been benefiting from these updates since 1996. Join our group by going here:
http://www.tradestalker.com/order-page.htm

If you don't have the Read the Greed Ebook, You can get a bonus package here:
http://www.tradestalker.com/special-ebook-offer.htm