TradeStalker's RBI Update 12/29/09

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TradeStalker's

R.B.I. Trader's Update

12 / 29 / 2009

(Published Since 1996)

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Dateline: 6:01 pm eastern time, 12/29/2009

NOTE: This will be the last nightly update until Sunday
evening on January 3rd, 2010. On Wednesday I will try to
update though the instant message page, but that will be it
until the new year. We would like to wish all of you a safe
and Happy New Year!!!

Last night the early game-plan I gave for Tuesday stated:

"...look for a shorting opportunity on a bounce to test
the Monday highs, or if the market makes token higher
highs, and the move stalls out."

We got that on the open as the ES gapped up and then
reversed from 1 tick over the 1126.25 Monday high. Then,
after a 2.75 point pullback, a bounce set up a 1-2-3 top as
1126.25 was reversed and the ES dropped 4.50 points to the
1123-1122.00 updated support. That set up a scalp trade on
the long side back to the 1124 resistance, but the market
didn't do much until the last hour. The ES went up to
1125.00, but then reversed and held under 1124.00 on a
bounce. That kept the pressure on in the last 15 minutes and
market continued lower until the it made new lows for the
day at the 4pm close for stocks.

The market is acting toppy, but still has refused to fall
apart. The bounces finally did not stick, as the new high
areas continue to be sold in to. At the moment there appears
to be more potential downside than upside, so if there is
another push higher and the move stalls / reverses, that
should make a good trade on the short side. If we get a test
of the 1128.50-1129.00 area on the ES, it should set up a
very good shorting opportunity. On the downside, there was a
number of highs at the 1117.75-1117.00 area before the ES
finally broke out of its range. A drop to that area would
need to be quickly reversed if reached, otherwise the series
of narrow range days could give a good sized range by ending
the year on a poor note.

So, look for a good shorting opportunity if there is another
bounce that fizzles out on Wednesday. On the flip side, if
there is a decent pullback beware of a potential reversal
back up if the 1117.75-1117.00 area is tested and reversed.
If that area is broken, and not reversed, then back away
from buying anything as the downside could be picking up
some steam.

NOTE: This will be the last nightly update until Sunday
evening on January 3rd, 2010. On Wednesday I will try to
update though the instant message page, but that will be it
until the new year. We would like to wish all of you a safe
and Happy New Year!!!

March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0

1123.75
1125.75-1126.25
1128.50-1129.00 ** strong
1132.00-1134.50

March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0

1120.50-1119.50
1117.75-1117.00
1115.00-1114.75
1111.25-1110.50


March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0

1873.50
1876.50-1877.00
1881.00-1882.00 ** strong
1886.50-1887.50

March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0

1868.00-1767.25
1864.50-1862.75
1858.50-1857.75
1853.00-1851.75

March 2010 Dow futures resistance
symbols: emini = ymh0

10509
10525-10529
10550-10555 ** strong
10568-10572

March 2010 Dow futures support
symbols: emini = ymh0

10477-10473
10451-10448
10432-10428
10399-10395

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Good Trading,
Mike Reed
TradeStalker.com

Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.

This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)

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PO Box 9783, Ft Wayne, IN, 46899

Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.

We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
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