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The
Mission of SignalWatch
On
SignalWatch, we review the major indexes and identify
key "action levels". These levels represent
a point where the energy in the market is likely
to create either a significant reversal or continuation
move.
Chart A is the Dow Jones Industrial Average from
September 2002 to February 2003. It is very clear
that from October to December it would have been
prudent to be on the Long side of the market, while
December to February made a strong case for being
on the Short side.
Our mission is to identify the points where primary
market moves are most likely, so we can take positions
that are in concert with the primary market direction.
Determining
Market Direction
In order to determine which way the market will
flow, we analyze the Dow, NASDAQ, and S&P
Indexes for specific technical patterns:
• Consolidations
• Trend Lines
• Retracements
• Gaps
• Lower Lows
• Higher Highs
• Support Levels
• Resistance Levels
From
this analysis and our experience with prior technical
market moves, we determine "Fulcrums" on
each index. These are essentially the dividing
lines between supply and demand in the market.
An
Example:
In Chart B to the right is a 15 Minute Chart of the Dow for
December 31, 2002. The market formed a clear trading range
from 8,250 to 8,365 and also formed a tight consolidation
at the highs within the range. From this behavior we determined
that an upside break through 8,365 would likely spark a solid
rally.
Subsequently
in Chart C, the index got the upside break through
8,365 and rallied 265 points on January 2, 2003.
The strength continued throughout the next two
sessions, pushing the Dow higher to 8,800 – a
435 point move from our noted resistance level
of 8,365!
These
opportunities are commonplace, and our mission
on SignalWatch Market is to illuminate them.
Trading
the Indexes with SignalWatch
Our SignalWatch Market commentary not only identifies the
index Fulcrum levels, but we also establish entry and exit
points. We have many subscribers that follow these levels
and trade the indexes with the assistance of our commentary.
These members place equivalent trades on the derivatives
or the e-mini futures product that represents the indexes.
Here is a table that shows what you can trade for the Dow,
NASDAQ, and S&P indexes.
| Index |
Derivatives |
Futures |
| Dow
Jones Industrials |
DIA |
Mini-Dow
(YM) |
| Nasdaq
100 |
QQQ |
NASDAQ
e-mini (NQ) |
| S&P
500 |
SPY |
S&P
e-mini (ES) |
We
suggest you review our track records in the links
below, and also review our subscriber testimonials.
Individual investors are using this commentary
each and every day to get "on the right
side" of the market.
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