Monday, 9-24-07

September 19th we got a quality sell signal for a short term trade from the 1530 areas. Notice the 60 minute stochastic was walking the ceiling as the 120 minute was just below. Now both should get quality oversold for the next buy around the 26/27th.

This is our mechanical model that gives us a very good buy and sell set up. For a sell Column N must be 150 or greater, column M at 100, column F at .75 or higher, column B above 100 with the closer to 150 the better the signal. When those parameters are met a quality sell signal is in place. I like to see column B decline before taking a position however if its above 150 and the other values are met it is safe to even use an option. Once the option is up 30% take it. Column D & E values give you the up trend and down trend values. Monday first hour those values are 1514 and 1508. Once the SnP is closed the bottom of an hour below 1508 the short term trend is down until it closes an hour above column D value.

Next week 1500 to 1490 is the projected low range for the week if the market is going to 1605 by 11-23-07 as I favor it is.