August 27, 2008 Trading Advisory Newsletter

Stock Trading Advisory Newsletter is provided by tradestalker.com.

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TradeStalker's

R.B.I. Trader's Update

08 / 28 / 2008

Intraday Update

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Dateline: 10:07 eastern time, es8u= 1289.5 nq8u= 1912

The big 1293-1294 zone on the ES and 1915.50-1916.50 area on the NQ has held the market down. A break of 1288 is needed to reverse the trend and take the ES to 1285 at least.

Good trading,
Mike

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TradeStalker's

R.B.I. Trader's Update

08 / 28 / 2008

Intraday Update # 2

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Dateline: 12:45 eastern time, es8u= 1294.5 nq8u= 1916

The ES held 1288 and rallied to the 1296.50-1297.25 zone.
If 1292.50 is broken then a top could be in.

Good trading,
Mike

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TradeStalker's

R.B.I. Trader's Update

08 / 28 / 2008

Intraday Update # 3

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Dateline: 2:24 eastern time, es8u= 1296.5 nq8u= 1917

The market looks like it might be topping out. The NQ is looking like a good short for a swing trade. If there is a rally back towards the 1919 level or a bit higher, scale in puts should offer a good trade over the next few trading days.

Good trading,
Mike

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TradeStalker's

R.B.I. Trader's Update

08 / 28 / 2008

Intraday Update # 4

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Dateline: 3:25 eastern time, es8u= 1297.5 nq8u= 1918

There is support at 1293.50 on the ES and 1911 on the NQ.
A close below those levels would be a bearish omen.

Good trading,
Mike

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TradeStalker's

R.B.I. Trader's Update

8 / 27 / 2008

(Published Since 1996)

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Dateline: 6:15 pm eastern time, 8/27/2008


After a flat open on Wednesday, the SP futures popped up to 1275.75 and reversed. But after a 5.25 point pullback to 1269.50, good buying came in and the market sprinted higher. The rally stalled and reversed from just under the 1280.50- 1281.00 resistance area, but the pullback undercut the updated 1273.50 support by 1 tick before reversing and rallying to new highs for the day. The SP futures reached 1285.25 which happened to be at the 1285.00-1285.50 resistance area and then pulled back to the 1280.50 updated support. The market bounced off of the 1280.75 level and per the 4th intraday update that pop back up to 1283.75 reversed and set up a good shorting opportunity. The SP futures dropped to 1279.75 before turning back up. The rally took the SP futures back to the 1284.75 level and then they reversed again. The selloff was a different end of the day, as the 1279.50 level turned into resistance and the SP futures dropped to 1276.25 in the last 10 minutes of stock trading. The SP futures stalled out and after getting through 1279.50, they ran up to 1283.00 by the close.

The market ended the day trapped in a narrow range. We get Jobless Claims and Preliminary GDP before the open on Thursday, and that's probably why. The Nasdaq has been a half of a step ahead of the rest of the market lately. It didn't end the day well, but it did hold at a support area. The market sentiment is getting overly bullish again, so if the market can hold together into Friday, it should set up a sizable selloff if everything comes together.

On Thursday, look for a shorting opportunity in the early going if the market goes up and tests the initial resistance and stalls/ reverses. If that occurs, be sure to keep an eye on the Nasdaq futures for the turn, as they were aggressively sold at the 1915.50-1916.50 area. If a pop up to those areas acts that way, then it should set up a very good trade on the short side. On the other side of the coin, if the market opens lower and the initial support can hold and the market stalls and reverses, then it should set up one more decent run to the upside. Aside from that, the market will need to break and hold above or below the afternoon ranges in order to get a directional move going in either direction. The reward/risk is in favor the short side given the double top at resistance on the SP futures and a poor close for the Nasdaq futures.

The initial resistance is at the 1285.00-1285.50 area on the SP futures and the 1915.50-1916.50 area on the Nasdaq futures. If the market gets through those areas and doesn't quickly reverse, then the next big hurdles are at the 1293.00-1294.00 area on the SP futures and the 1932.00- 1932.50 area on the Nasdaq futures. If those are reached and not sold, then a move towards the 1296.50-1297.25 area on the SP futures and the 1937.50-1938.25 area on the Nasdaq futures is likely before a reversal occurs. If the market gets up there and shows no sign of reversing, then the 1302.50-1303.50 area on the SP futures and the 1943.50- 1945.00 area on the Nasdaq futures would be big resistance short term.

The initial support is at the 1276.75-1276.25 area on the SP futures and the 1897.00-1896.00 area on the Nasdaq futures. If those areas don't hold, then a short term top could be in place. The next support is at the 1273.00-1272.50 area on the SP futures and the 1890.00-1889.25 area on the Nasdaq futures. If those are cut through, then the 1269.50-1268.50 area on the SP futures and the 1884.75-1883.50 area on the Nasdaq futures would need to hold to avoid a bad day. The next support would be at the 1266.00-1265.75 area on the SP futures and the 1882.75-1882.00 area on the Nasdaq futures, and then the major support is down at the 1263.00-1262.50 area on the SP futures and the 1877.00-1876.50 area on the Nasdaq futures.



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

1285.00-1285.50
1293.00-1294.00
1296.50-1297.25
1302.50-1303.50
September 2008 SP futures support
symbols: emini = esu8 / big contract =spu8

1276.75-1276.25
1273.00-1272.50
1269.50-1268.50
1266.00-1265.75
1263.00-1262.50


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

1915.50-1916.50
1932.00-1932.50
1937.50-1938.25
1943.50-1945.00


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

1897.00-1896.00
1890.00-1889.25
1884.75-1883.50
1882.75-1882.00
1877.00-1876.50


September 2008 Dow futures resistance
symbols: emini = ymu8

11549-11553
11633-11636
11677-11682
11726-11731


September 2008 Dow futures support
symbols: emini = ymu8

11464-11462
11440-11437
11419-11414
11370-11368
11344-11340


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

736.00-736.30
739.40-739.90
742.50-742.80
746.30-746.60


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

729.00-728.60
726.70-726.20
723.40-723.10
718.90-718.50
715.90-715.50


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HOW THE DAY WENT: We wanted to short early strength, then buy the first decent pullback that reversed. The ES popped up to 1275.75 and then dropped 5.25 points to 1269.50 before turning up. Our last resistance zone was at the 1285.00-1285.50 zone on the ES. I goofed up and sent an update telling the group to avoid the short side while we were at that zone. That got clarified in time to trade react to a double top there and they sold off to 1276.25 before the close. New trial members note that the intraday updates are below the nightly support and resistance tables.


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