TradeStalker's RBI Update 04/29/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 29 / 2009

(Published Since 1996)

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

Dateline: 6:31 pm eastern time, 4/29/2009

The market opened higher on Wednesday and kept going until
reaching the 865.00-865.50 zone and the market pulled back.
The dip was only 3 points on the ES, and then they rallied
to the 871.50-872.50 resistance zone. The ES pulled back to
the 867.75, which was at updated support, and then turned up
and finally took out the 872.00 high from April 17th. The ES
reached 874.50 and then went sideways for about 25 minutes
going into the Fed release. After the release, there was a
quick back and forth move and then a sprint to 879.25 on
the ES followed. A reversal occurred there, and the market
spent the next 75 minutes selling off in choppy fashion
before bouncing into the close.

The market averages closed at new highs for this leg up on
Wednesday. Despite the good internals on Wednesday, the
daily internal gauges are showing some divergence up here.
The key for the bulls will be to stay over the late lows
made on Wednesday. If those are broken, then odds are pretty
good that another rejection at the top of this trading range
was important and it could mean another drop to test or
break the 850 area.

Lately, if there is early weakness, the market turns around
and rallies into late morning. If there is early weakness on
Thursday, look for the same reaction. If the market opens
higher, then be on look-out for a reversal if the upside
fizzles in the first 15 minutes or so. If that plays out, it
could set up a real nice trade as it looks like the ES needs
to get over the 874.50-875.50 zone, and then hold that area
on a pullback, to have a real breakout of the top of this
trading range.

June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

870.25-871.25
874.50-875.50
878.50-879.25
880.50-882.00
888.75-889.50


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

863.75-863.25
858.25-857.75
850.75-850.25
843.50-842.75
837.25-836.75
831.50-831.00 **key**


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1382.50-1384.00
1391.50-1392.50
1396.50-1397.50
1400.00-1402.50
1408.50-1409.75


June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1374.00-1373.25
1367.75-1367.00
1358.50-1357.25
1354.25-1353.25
1343.00-1342.00
1328.00-1327.00 **key**


June 2009 Dow futures resistance
symbols: emini = ymm9

8141-8145
8171-8177
8199-8205
8218-8228
8297-8302


June 2009 Dow futures support
symbols: emini = ymm9

8078-8072
8018-8012
7956-7952
7885-7881
7819-7813
7755-7751 **key**

CLICK HERE for FREE Trading Articles and Videos!
---------------------------

REMINDER:

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

http://www.tradestalker.com/members

Good Trading,
Mike Reed

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)

www.TradeStalker.com

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.
*************************************************

TradeStalker's RBI Update 04/28/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 28 / 2009

(Published Since 1996)

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


Dateline: 7:05 pm eastern time, 4/28/2009


The ES opened down about 12 points on Tuesday and then from
842.75 the ES turned back up and rallied into late morning.
A double top formed, but while the NQ was dropping steadily,
the ES chopped in a range, and then the market made a run to
higher highs. The ES reached 861.50, just above the Monday
breakdown level, and the move reversed. Unable to stay over
the 860 level, the ES dropped another 10 points to 850.25
just before the close.

The market is acting tired, and that's not good near the top
of the current trading range. Some of the internal momentum
gauges are rolling over in the meantime. On Tuesday there
was another gap down open that then turned into a decent
rally. That's twice this week, and it happened a few times
the previous week. The 2 reversals morning reversals were
reversed around noon and 11am this week. When buyers don't
aggressively buy the early weakness, then things could get a
bit skittish on the downside.

We get the Fed interest rate policy statement on Wednesday
around 2:15pm eastern time. If there is early weakness,
beware of yet another reversal to set up a quick trade on
the long side. If that plays out, look for a shorting
opportunity as soon as the move fizzles/reverses as the
first decent rally will likely be sold in to. The ES needs
to get over 861 and not quickly reverse to get a short
squeeze going. Unless the market can show that strength, the
bounces are better odds trading opportunities until the
market sells off or gets very oversold near a good support
area.


June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

861.00-861.50
865.00-865.50
868.00-868.75
871.50-872.50 ES-875-878 SPX, 200d sma/trip top
876.00-876.50
880.50-882.00


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

850.75-850.25
843.50-842.75
837.25-836.75
831.50-831.00 **key**


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1377.00-1377.50
1382.25-1384.00
1388.50-1389.00
1394.25-1396.00
1398.75-1399.75

June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1358.50-1357.25
1354.25-1353.25
1343.00-1342.00
1328.00-1327.00 **key**


June 2009 Dow futures resistance
symbols: emini = ymm9

8039-8044
8070-8074
8082-8088
8119-8123
8137-8142

June 2009 Dow futures support
symbols: emini = ymm9

7956-7952
7885-7881
7819-7813
7755-7751 **key**


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

REMINDER:

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

http://www.tradestalker.com/members


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


Good Trading,
Mike Reed

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)

www.TradeStalker.com

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.
*************************************************

TradeStalker's RBI Update 04/27/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 27 / 2009

(Published Since 1996)

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


Dateline: 5:42 pm eastern time, 4/27/2009

A gap down open reversed on Monday and the ES rallied from
851.00 to 865.50 by noon. The 861 level was broken, starting
a drop to test the early lows. The ES held at 850.50 and
bounced back to 859 as the market chopped into the close.

Short and sweet, a bit under the weather today... On
Tuesday the ES needs get over and hold the 859.75-860.25
area, and not quickly reverse as it did on Monday, to avoid
more trouble. On the downside, the ES needs to hold the 850
level and the Dow cash needs to hold 8000 to avoid more
damage on Tuesday. So, unless that 860.25 level is
overtaken, the bounces offer the better odds trades. A move
back towards the 846.00-845.50 area seems likely, and if
reversed then the 850.50-851.00 area on the ES and 8000 area
on the Dow cash would then be pivotal resistance.

June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

859.75-860.25
865.00-865.50
868.00-868.75
871.50-872.50 ES-875-878 SPX, 200d sma/trip top
876.00-876.50
880.50-882.00


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

851.00-850.50
846.00-845.50
837.25-836.75
831.50-831.00 **key**


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1374.50-1375.25
1382.25-1384.00
1388.50-1389.00
1394.25-1396.00
1398.75-1399.75

June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1362.50-1362.00
1354.75-1354.00
1343.00-1342.00
1328.00-1327.00 **key**


June 2009 Dow futures resistance
symbols: emini = ymm9

8016-8022
8070-8074
8082-8088
8119-8123
8137-8142

June 2009 Dow futures support
symbols: emini = ymm9

7938-7934
7885-7881
7819-7813
7755-7751 **key**


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

REMINDER:

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

http://www.tradestalker.com/members


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


Good Trading,
Mike Reed

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)

www.TradeStalker.com

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.
*************************************************

TradeStalker's RBI Update 04/26/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 26 / 2009

(Published Since 1996)

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


Dateline: 5:08 pm eastern time, 4/26/2009


*** IMPORTANT REMINDER - If you aren't logging into our
intraday instant messenger room each day, you are really
missing out! This service is included in your subscription.
Throughout the day I update everyone in the room numerous
times on market action as well as updated support and
resistance areas. If you'd like to join us and need your
username and password, please contact Julie at:
tradestalker2@verizon.net . On to the market...

The market started the week on a down note, but the bulls
got it together and the market made a good come-back to end
the week. On Friday the ES gapped up on the open and kept
going until reaching 860.25. That was just under resistance,
and a pullback from there held at the updated 853-852 area,
and then the market rallied to new highs. In the update that
was sent shortly thereafter, I said to short the next pop,
and the ES bounced up to 864.50 and then reversed. That led
to a 12 point drop to 852.50 support, where another reversal
occurred. The ES went up to make a high at 868.75, while the
NQ made a new recovery high at 1378.50, and another 12 point
drop on the ES followed. The low at 856.75 was reversed and
the market bounced back towards the highs into the close.

The daily indicators are still mostly neutral, while the
SP500 cash closed just 3 points below its prior closing
high. The market has been in a trading range environment,
with plenty of volatility and good moves in both directions.
The breadth on the NYSE has been very good and very bad
recently. This has the McClellan Oscillator making a
triangle pattern. A move out of this pattern should at worst
set the stage for more volatility. As for the sentiment, it
is back to neutral also, as the Vix has been in a trading
range of its own lately.

To go with that mixed bag, prices are at a pretty key spot
it appears. If the market turns back down from here on a
closing basis, a 1-2-3 top could be put in place. If instead
the market still wants to rally, then another test of the
875-878 area on the SP500 cash will be critical. If the
market fails to break out, then the market will likely fall
back to the bottom of this trading range. If there finally
is a breakout, then it's possible that the move could
accelerate as it forces new money into the market, not to
mention squeezing shorts.

On Monday look to short early strength as soon as the upside
fizzles and/or reverses. If that plays out early, then
beware of a reversal if the ES drops 12 points fast. If the
ES drops more than 12 points, or cannot quickly reverse on a
drop, then things might be changing. As long as the bulls
can defend the 853.00-852.50 area on the ES, the market will
be "okay" and the bulls are still in charge. However, if
that area is broken, and the market cannot snap right back,
then the bounces will set up shorting opportunities as the
market could be making a transition to the downside and fill
the Friday gap at a minimum.

June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

868.00-868.75
871.50-872.50 ES-875-878 SPX, 200d sma/trip top
876.00-876.50
880.50-882.00


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

856.75
853.00-852.50
850.00-849.50
846.00-845.50
837.25-836.75
831.50-831.00 **key**


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1378.00-1379.00
1383.25-1384.50
1389.50-1390.75


June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1363.00
1357.50-1356.75
1352.50-1351.75
1343.00-1342.00
1328.00-1327.00
1319.75-1319.00 **key**


June 2009 Dow futures resistance
symbols: emini = ymm9

8078-8082
8109-8115
8137-8142


June 2009 Dow futures support
symbols: emini = ymm9

7975
7963-7959
7925-7922
7885-7881
7819-7813
7755-7751 **key**


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

REMINDER:

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

http://www.tradestalker.com/members


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


Good Trading,
Mike Reed

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)

www.TradeStalker.com

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.

TradeStalker's RBI Update 04/23/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 23 / 2009

(Published Since 1996)

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

Dateline: 6:15 pm eastern time, 4/23/2009

A higher open was reversed 1 tick under the 845.25-846.00
resistance zone on the ES, and it then dropped to the
831.50-831.00 support zone. The market turned back up and
rallied to 847.00 by late afternoon. The break through
845.00 started a reversal that took the ES down to 836.75,
and then the market turned back up and closed at the highs.

The market gyrating left the internal gauges in neutral at
Thursday's close, as a trading range is developing. On
Friday, unless/until this range is resolved, look for a
shorting opportunity if there is early strength that
fizzles/reverses and then look for a buying opportunity on a
pullback that can get its footing and turn around. The
market isn't holding gains consistently, so beware of a
reversal when bids dry up at higher levels. For now, nothing
bad happens unless the 831.50-831.00 zone on the ES is
broken and not quickly reversed.

June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

853.50-854.00
858.25-858.75 **key**
861.50-862.00


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

837.25-836.75
831.50-831.00 **key**
825.00-824.50
818.75-818.00


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1353.00-1354.00
1361.50-1362.00 **key**
1366.75-1367.25


June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1328.00-1327.00
1319.75-1319.00 **key**
1313.25-1312.50
1303.50-1303.00


June 2009 Dow futures resistance
symbols: emini = ymm9

7944-7947
7994-7998 **key**
8023-8027


June 2009 Dow futures support
symbols: emini = ymm9

7819-7813
7755-7751 **key**
7694-7691
7618-7612

CLICK HERE for FREE Trading Articles and Videos!
---------------------------

REMINDER:

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

http://www.tradestalker.com/members


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


Good Trading,
Mike Reed

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)

www.TradeStalker.com

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.
*************************************************

TradeStalker's RBI Update 04/22/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 22 / 2009

(Published Since 1996)

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

Dateline: 6:46 pm eastern time, 4/22/2009

The gap down open reversed from 836.00, at the 836.25-835.75
*key* zone on Wednesday, and rallied to the 856.75-857.25
resistance zone before resting. A pullback from 856.75
reversed from 2 ticks under updated support at 846 on the
ES, and it rallied to a token higher high. With 50 minutes
left in stock trading, the move reversed and the market then
dropped hard to end the day.

We sure had two-sided action on Wednesday, and probably will
again on Thursday although shorts should work out better.
The daily indicators are mixed, and not saying a whole lot
right now. The market has been weak in the morning and then
ends strong when the market was in good shape. Now, even if
early weakness is bought, the moves are not sticking.

On Wednesday, a lower open that reverses should set up a
bounce. If that plays out, beware that the first decent
bounce will likely be sold. The early key resistance would
be at the 845.25-846.00 area on the ES, and that needs to be
cleared just to get into neutral territory.

June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

838.75-839.25
845.25-846.00
852.50-853.00
858.25-858.75 **key**
861.50-862.00


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

835.75-835.00
831.50-831.00
825.00-824.50 **major**
818.75-818.00


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1335.25-1336.75
1341.50-1343.00
1350.50-1351.50
1361.50-1362.00 **key**
1366.75-1367.25


June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1319.75-1319.00
1313.25-1312.50
1303.50-1303.00 **major**


June 2009 Dow futures resistance
symbols: emini = ymm9

7827-7834
7884-7888
7944-7947
7994-7998 **key**
8023-8027


June 2009 Dow futures support
symbols: emini = ymm9

7802-7798
7769-7765
7716-7712 **major**

CLICK HERE for FREE Trading Articles and Videos!
---------------------------

REMINDER:

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

http://www.tradestalker.com/members

Good Trading,
Mike Reed

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)

www.TradeStalker.com

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.
*************************************************

TradeStalker's RBI Update 04/21/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 21 / 2009

(Published Since 1996)

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

Dateline: 6:56 pm eastern time, 4/21/2009

The market gapped down on Tuesday and the weakness was
immediately bought and a good bounce followed. That move
fizzled and reversed after filling the gaps, and then the
market pulled back. A higher low reversed at the 824.50
level on the ES, and it rallied to 842.00 before pulling
back. The dip held at 825.75 on the ES and then in the last
2 hours there was an up-down-up-down-up move to make highs
in the last 5 minutes of trading.

Per usual of late, the market came rallying back after a big
down day. It appears that the Wednesday action could be
critical for the short term here. The Vix turned down pretty
hard after Tuesday's big up move on it. That is a short term
positive. Also, the gap that was at 825.25 on the daily
chart was filled, and the ES rallied away from there by
quite a bit. The daily internal gauges are mixed, so there
isn't much there. This could set up some two-sided trading.
After back to back trend days, the market is likely going to
be sold when strength fizzles, but then bought when there is
a decent pullback.

On Wednesday, if there is early strength, it will likely set
up a very good shorting opportunity. If that plays out, then
as long as the 841.00-840.50 area on the ES is held, a turn
back up should set up a buying opportunity. If that area is
broken, then the Tuesday highs should offer good resistance
on a bounce, as a rebound high could be in place.

June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

849.75-850.50
852.00-852.75
856.75-857.25
861.50-862.00

June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

841.00-840.50
836.25-835.75 *key*
825.25-824.50 *major*
819.00-818.50


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1333.25-1334.00
1338.25-1339.50
1343.25-1344.50 *key*
1348.75-1350.25

June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1322.00-1321.25
1313.25-1312.50
1303.50-1303.00
1293.50-1292.50


June 2009 Dow futures resistance
symbols: emini = ymm9

7941-7944
7959-7963
8034-8037
8083-8087

June 2009 Dow futures support
symbols: emini = ymm9

7878-7874
7839-7835
7746-7744
7707-7703

CLICK HERE for FREE Trading Articles and Videos!
---------------------------

REMINDER:

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

http://www.tradestalker.com/members


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


Good Trading,
Mike Reed

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)

www.TradeStalker.com

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.
*************************************************

TradeStalker's RBI Update 04/20/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 20 / 2009

(Published Since 1996)

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

Dateline: 6:26 pm eastern time, 4/20/2009

The indicators were overbought and we had 2 Vix sell signals
coming into Monday, after the market made new recovery highs
last Friday. The pullback that was expected started at the
open on Monday, as the ES opened down about 16 points and
then broke lower after about 10 minutes of trading. It was a
choppy but trend down move from there, with the low on the
ES at 828.75 being made in the last 5 minutes of stock
trading.

On Friday the SP500 cash reached a high of 875.63, right in
the 875.01-877.86 area that marked the 1/28 and 2/09 highs.
So far, the result is the same as the SP500 dropped 43
points from Friday's high on a closing basis. With the
averages all closing down 3 percent or more, the internal
gauges backed out of extreme overbought territory. Also, the
Vix jumped over 15% on Monday. That's what happens when the
dips aren't aggressively bought.

After these big down days the market has been able to snap
back, and should give us at least 2-sided action on Tuesday.
If there is follow-through weakness, it should set up a good
trade on the long side if the market can reverse back up in
the first 20-40 minutes. It would be especially good if the
ES first drops to the 825.25-824.50 area and then reverses.
If the market opens higher, but turns down from around the
835.25-835.75 area, then the bears are still in charge and a
test of the Monday low, or lower, is likely.

June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

835.25-835.75
839.00-839.50
845.00-845.50
849.75-850.50
856.75-857.25


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

829.00-828.75
825.25-824.50
819.00-818.50
812.00-811.50


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1316.75-1317.50
1321.25-1322.25
1327.75-1328.50
1333.25-1334.00
1338.25-1339.50


June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1307.50-1307.00
1301.50-1300.50
1293.50-1292.50


June 2009 Dow futures resistance
symbols: emini = ymm9

7848-7852
7866-7870
7910-7916
7947-7951
8034-8037


June 2009 Dow futures support
symbols: emini = ymm9

7790-7785
7756-7752
7707-7703


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

REMINDER:

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

http://www.tradestalker.com/members


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


Good Trading,
Mike Reed

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

www.TradeStalker.com

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.
*************************************************

TradeStalker's RBI Update 04/19/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 19 / 2009

(Published Since 1996)

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

Dateline: 5:10 pm eastern time, 4/19/2009

The market had another good week, as the drops were reversed
and buying came in to drive prices higher.On Friday the ES
opened higher and then sold off, but per normal of late, the
market turned back up about 20 minutes into trading. The
market managed to rally in the afternoon, getting up to 872
on the ES and 875.63 on the SP500 cash before pulling back
into the close.

A quick note about this week. We have a Trading Camp this
week, therefore there will be fewer intraday updates Monday
thru Thursday due to the trading camp. However, will do my
best to keep you updated in the Instant Message room at the
least.

The market ended the week on a strong note, but did back
away from the old double top at the 875.01-877.86 zone.
Lately the weakness has occurred in the morning, and then
the market gets footing and rallies. When that action stops,
the market will get a bit shaken up.

The market has been moving higher and the trends and
momentum favor the bulls. However, there should be a decent
pullback coming soon. The daily indicators, after 3 straight
days of rally, have stretched into very overbought
territory. In addition, the market reacted to that
resistance up at the 1/28-2/09 highs on SP500 Cash. Everyone
who bought just before the drop to 667 is almost back to
break-even, so there should be some difficulty up here. If
not, and the Friday highs are broken and not quickly
reversed, then the ES could head towards the 880 area and
the Dow to the 8200 area to see how the market reacts to
those round numbers. However, if there is a selloff, then
the Friday low areas would need to hold to avoid trouble. If
there is a close under the 856 level on the ES, it could be
the beginning of a topping process.

June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

871.75-872.75
877.75
880.50-882.00


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

865.00-864.75
861.00
857.25-856.50
849.25-849.00 **key**
843.50-843.00


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1359.75-1360.75
1367.50
1373.50-1374.50


June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1350.50-1349.50
1342.00
1337.50-1336.50
1328.00-1327.50 **key**
1320.50-1319.75


June 2009 Dow futures resistance
symbols: emini = ymm9

8134-8138
8192
8237-8242


June 2009 Dow futures support
symbols: emini = ymm9

8057
8038-8035
7957-7954 **key**
7909-7905


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

REMINDER:

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

http://www.tradestalker.com/members


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


Good Trading,
Mike Reed

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)

www.TradeStalker.com

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.
*************************************************

TradeStalker's RBI Update 04/16/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 16 / 2009

(Published Since 1996)

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

Dateline: 6:24 pm eastern time, 4/16/2009

The gap up open on Thursday reversed from just under the
855.50-856.00 resistance zone on the ES and right in the
1334.75-1336.00 resistance on the NQ, and the market pulled
back. The NQ bounced back to 1335.25 while the ES lagged,
and then a second wave of selling hit the market. The ES
dropped to 843.25, which was a tick above initial support,
and reversed and then a grind higher took the ES back to
854.75. The market pulled back, but the ES held the 849.00
support level and turned back up. After getting through the
855 level, buying and short covering started a buying frenzy
that took the ES to 867.00. The move was parabolic and with
20 minutes left, profit taking sent the ES to 858.50 before
it firmed into the close.

The internal gauges are very overbought and there is a very
complacent mood to the market at the moment. After making
across the board new recovery highs, the market has been
pulling back. The market should have some difficulty making
headway, and a selloff is good odds from up here. If the
market gets back to the Thursday highs and fizzles, it's a
short with a tight stop. Given the Thursday action, both the
bulls and the bears would probably like to see that zone
tested right now. However, if Thursday's highs are cut
through without a problem, then the last good overhead
resistance up here is at the 875.01-877.86 area on the SP500
cash, which was a double top on 1/28 and 2/09 just before
the drop to 667 started. So, that is what the bulls are up
against. On the down side, nothing bad happens on Friday
unless the 849.25-849.00 is tested and not defended.

On Friday, early weakness that can turn back up in the first
20 minutes is a buying opportunity. If that plays out, look
for a shorting opportunity if the upside fizzles and/or
reverses. It could be bad news if 849 isn't held.

June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

866.50-867.00
875.01-877.86 {1/28-2/09 highs on SP500 Cash}
881.50-882.00


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

855.00-854.50
849.25-849.00 **key**
843.50-843.00


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1357.75-1358.25
1379.75-1381.50


June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1339.75-1338.50
1334.00-1332.50 **key**
1320.50-1319.75


June 2009 Dow futures resistance
symbols: emini = ymm9

8112-8119
8237-8242


June 2009 Dow futures support
symbols: emini = ymm9

8013-8008
7957-7954 **key**
7909-7905

CLICK HERE for FREE Trading Articles and Videos!
---------------------------

REMINDER:

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

http://www.tradestalker.com/members


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


Good Trading,
Mike Reed

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)

www.TradeStalker.com

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.
*************************************************

TradeStalker's RBI Update 04/15/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 15 / 2009

(Published Since 1996)

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

Dateline: 6:34 pm eastern time, 4/15/2009

The market opened lower but then reversed from the 832.00-
831.50 support zone. A choppy up-down-up move took the ES to
the 844.50-845.00 resistance zone, where the move was
reversed. The ES dropped 10 points to 834.25, and then made
a little double bottom there with just over an hour left in
trading. The upside gathered momentum, cutting through the
844.50-845.00 zone on the way to an 850.50 high at the
close.

The market acted very well by holding 834 and rallying back
nicely. There were 5 good swings on Wednesday and the move
left the internal gauges modestly overbought. This still
looks like a trading range that the market is in and the
Wednesday lows should be the bottom end for now. As long as
the 834 area on the ES is held on a drop, it's just a
pullback to the bottom of the range and should be bought. On
the top side, if the 850 level isn't reversed, then the top
side of this range should be no higher than 869.62 on the
SP500 cash, or about the 867-868 zone on the futures. First
though, that 860 level would need to be exceeded, and not
quickly rejected.

On Thursday look for early strength to fizzle to set up a
shorting opportunity. A move over, then back under, the 850
level should trigger selling. If that plays out, beware that
the first decent pullback should set up a buying
opportunity. The 839.75-839.25 area would be a good spot for
the upside to resume. If that is broken, then the Wednesday
lows must hold or else the market is coming apart a bit.

June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

852.50-853.25 *key*
855.50-856.00
861.25-862.00
867-868
877-878 SP500 Cash

June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

843.00-842.50
839.75-839.25
834.75-834.25 *key*
830.50-830.00


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1321.75-1322.00 *key*
1326.50-1327.25
1334.75-1336.00


June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1307.75-1307.00
1302.25-1300.75
1294.00-1293.50 *key*
1287.25-1286.50


June 2009 Dow futures resistance
symbols: emini = ymm9

7975-7983 *key*
8015-8020
8063-8068


June 2009 Dow futures support
symbols: emini = ymm9

7926-7922
7901-7898
7858-7854 *key*
7827-7823


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

REMINDER:

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

http://www.tradestalker.com/members


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


Good Trading,
Mike Reed

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)

www.TradeStalker.com

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.
*************************************************

TradeStalker's RBI Update 04/14/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 14 / 2009

(Published Since 1996)

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

Dateline: 6:54 pm eastern time, 4/14/2009

The market opened down on Tuesday, but the reversal came on
time. The ES reached 840.50 and reversed in the first 20
minutes of trading, and then rallied to the Monday closing
range. The ES reached 853.25, and then the move stalled out
before rolling over. The ES worked its way back down to
836.25 shortly after noon, but a bounce reversed the 840
level and the ES tested its low. The test passed, and the ES
bounce to the updated 842.50 resistance level and then
backed off 4 points. Buyers stepped in and took the ES to
845.00 before the selling came back and the ES dropped to
837.00 and then bounced into settlement.

The daily indicators worked off some of the overbought
status on Tuesday. The drop didn't generate much fear,
however, as the Vix actually dropped on a pretty hard down
day or stocks. The market looked like it topped on Monday,
and
the averages closed under the Monday lows on Tuesday, so a
topping pattern is in place. The upside still looks limited,
with the market going into a trading range being best case
scenario for the short term.

It's earnings season and the futures are trading lower as
this is typed. On Wednesday, look for similar action that
occurred early Tuesday to play out. If the market opens
lower,
and can reverse in the first 20-30 minutes, it could bring a
decent bounce. If that plays out, beware that the first
decent bounce will set up a shorting opportunity, and
probably with better potential than the rally attempt.


June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

839.50-840.00
844.50-845.00
852.50-853.25 *strong*

June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

836.50-836.25
832.00-831.50
825.25-825.00 *gap fill*
818.00-817.50

June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1319.50-1320.00
1326.50-1327.25
1334.75-1336.00

June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1306.75-1305.75
1301.25-1300.50
1296.75-1295.75
1287.50-1286.50

June 2009 Dow futures resistance
symbols: emini = ymm9

7891-7896
7920-7925
7975-7983

June 2009 Dow futures support
symbols: emini = ymm9

7841-7838
7808-7804
7738-7734
7698-7694

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

REMINDER:

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

http://www.tradestalker.com/members


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


Good Trading,
Mike Reed

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)

www.TradeStalker.com

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.
*************************************************

TradeStalker's RBI Update 04/13/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 13 / 2009

(Published Since 1996)

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


Dateline: 6:54 pm eastern time, 4/13/2009

The market opened weak on Monday, and the ES dropped to
841.50 in the first 25 minutes and reversed. The rally off
of that low fizzled and reversed from 850.75 on the ES, and
unable to hold 850, the ES pulled back to make a little
double bottom at the 843.50-843.25 zone before noon. Buyers
stepped to the plate and the ES rallied to the 854.00-855.00
resistance zone while the NQ made it back to the 1335-
1335.75 area where selling came back in. The ES fell back to
850.25 and bounced back, but the move was reversed from the
854.00 level and the market pulled back again. With an hour
left in stock trading, the ES broke the 850 level and
quickly reversed and it caused a run-up to 861.25 in almost
parabolic fashion. The move fizzled and the ES gave back
over 8 points going into the close.

On Tuesday we get the PPI and Retail Sales before the open,
and Business Inventories number 30 minutes into the day
might be a mover at this juncture. The internal gauges are
now getting overbought, and the Vix gave another sell signal
on Monday by reversing. The ES rejected the 860 level the
first time, and could be a top. If not, there shouldn't be
too much more upside. This leg up would be the same distance
as the rally from March to May of 2008 by reaching 869.62 on
the SP500 cash. That level shouldn't be exceeded if the
market is going to get hit with a selloff soon. The upside
appears limited however and that late reversal on Monday
could be the start of a decent shakeout. The Monday high
was 865.31, pretty close when looking at a larger timeframe.

On Tuesday, look for any over-reaction either up or down to
be reversed in the first 20-30 minutes of trading. Shorting
a higher open would be a good odds trade with the market
this extended. After the early going, it looks like the
850.25-849.50 zone on the ES could be pivotal. Pullbacks
that hold that area should be bought, but if that area
breaks, then the downside should be the path of least
resistance short term.


June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

860.75-861.25
863.50-864.25
869.62 on SP500 Cash key - symmetry
875-877 {SP500 Cash} is **major**


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

850.25-849.50
843.00-842.75
839.00
832.00-831.50

June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1343.00-1343.50
1346.50-1347.50
1352.50-1354.00

June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1329.00-1328.50
1322.75-1322.25
1318.00
1313.25-1312.50
1306.75-1305.75 **major Monday**


June 2009 Dow futures resistance
symbols: emini = ymm9

8059-8063
8083-8088
8142

June 2009 Dow futures support
symbols: emini = ymm9

7961-7958
7914-7911
7874
7811-7808

CLICK HERE for FREE Trading Articles and Videos!
---------------------------

REMINDER:

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

http://www.tradestalker.com/members


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


Good Trading,
Mike Reed

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)

www.TradeStalker.com

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.
*************************************************

Day Trading Success: Here is the Key!

Hi Everybody,

How much money have you lost already to the markets this
year? How much more will you lose?

RBI Trading Camp can make the difference between failure and
success, between losing and winning...Between walking and
running.

"Hi Mike! Taking your RBI Trading Camp last December was the
key that unlocked the door to success after several years of
"trying" but never being a very profitable trader...Well,
happiness is the six figures I made the first two months of
this year...It was watching you in class, getting a sense of
the rhythm, and seeing exactly "how" you do it that made the
big difference." Laura E. - Colorado

RBI Trading Camp is a life changing experience...

Hi Mike
"Thought I would give you a quick update on my trading. For
the month of March, I am happy to report that I netted over
$7,000 and had a win ratio in excess of 80%. Although this
is not "big" money, I have never generated a profitable
month by day trading in my life. And this is in spite of the
many mistakes I still make. Thanks again, Mike. I owe it
all to you." David S. - Wisconsin

Learn what you've been doing wrong. Break those bad trading
habits. Learn to trade from a 27 year veteran trader.

There are only 2 spots left for RBI Trading Camp, don't be
left out!

CLICK HERE to Sign up now!

To Your Success,

Julie
TradeStalker.com
CLICK HERE for Mike Reed's FREE "Basic Guide to Support and Resistance Trading"
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)

TradeStalker's RBI Update 04/12/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 12 / 2009

(Published Since 1996)

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

Dateline: 5:28 pm eastern time, 4/12/2009

First, the issues with both the Instant Message page and the
Member site page should be back and working okay by now. The
whole Parachat network was down on Thursday. Their outage
was due to the sabotage of fiber optic cables near San Jose,
California, which became national news. Let's hope they
fixed it without incident so there are no more hassles with
that. On to the market....

The market ended a good week for the bulls, as the market
put together another very good rally on Thursday. The big
gap up open on Thursday was sold into, with the reversal
coming from a direct hit on the 847.75-848.00 resistance
zone. The selling took the ES down to 840.00 before firming
up. Buying came back in and another rally to the 847.75-
848.00 resistance zone was sold. However, 843.00 held and
then the ES broke and held the double top and rallied to
854.50 in the final minutes of trading.

The daily internal gauges are not keeping up with the rally
and that is usually a warning flag that the "guts" of the
market are losing upside momentum. In addition to that, the
Vix gave a couple of sell signals on Thursday. The market is
acting very good, but odds favor a decent pullback soon. The
action was not unlike last Friday and the week started with
a gap down open. In any case, if the market sells off from
up here, then the SP500 cash needs to stay over 815.55 on a
close, and the ES needs to stay over the 811.50-810.50 zone.
Unless those are broken, the market will stay in a bullish
mode.

On Monday look to sell into early strength as soon as the
upside fizzles/reverses. If the market obliges, then the
first decent pullback should get footing and hold the
initial support areas. If the market cannot hold the initial
support areas, then the trends could be rolling over. If
that occurs, then selling the bounces will be the better
odds trades, rather than buying pullbacks that stall and
reverse.

June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

854.00-855.00
858.25-858.75
863.50-864.25
875-877 {SP500 Cash} is **major**


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

847.75-847.25
843.00-842.75
839.00
832.00-831.50
825.25-825.00 **major Monday**


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1341.00-1342.00
1346.25-1347.25
1354.50-1355.50


June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1332.00-1331.00
1326.50-1325.75
1318.00
1313.25-1312.50
1306.75-1305.75 **major Monday**


June 2009 Dow futures resistance
symbols: emini = ymm9

8037-8052
8068-8072
8108-8113


June 2009 Dow futures support
symbols: emini = ymm9

7984-7981
7954-7951
7919
7874-7869
7838-7834 **major Monday**


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

REMINDER:

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

http://www.tradestalker.com/members


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


Good Trading,
Mike Reed

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

www.TradeStalker.com

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.
*************************************************
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)

TradeStalker's RBI Update 04/08/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 8 / 2009

(Published Since 1996)

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

Dateline: 5:44 pm eastern time, 4/8/2009

The early game-plan worked out perfectly on Wednesday. The
early strength was reversed 20 minutes into the trading day,
and from an 821.75 high the ES dropped to the 811.00 level.
That was the test of Tuesday's low we were looking for, and
the market firmed and then turned back up. The rally fizzled
out after the ES poked over 825 and reversed. Buyers backed
away, and shorts jumped on, and the ES spilled back to
811.75 with just under an hour left in trading. Buyers
stepped to the plate and the market ended the day in a nice
uptrend as the ES rallied back to 823.00 just before
settlement.

The two-sided action that was expected set up some good
trading opportunities on Wednesday. The market has a pretty
solid bid when the downside stalls out and begins to turn
up. However, when the market gets back to what feels like
thin air, the selling starts and buyers back off until the
downside stalls. The market still has work to do to avoid a
bigger picture top, but it looks like a break of the 811-810
area on the ES is what it will take to break the market and
send the ES under 800.

On Thursday look to buy early weakness, and then if the
market obliges, the move should be prone to reverse as soon
as the upside fizzles. If a reversal occurs from around the
827.25 level, then it could be a high for the morning.
However, if there good follow-through on the upside and
that's not a problem, then we could see the 834.00-834.50
area before selling comes back in. If that turns out to be
the case, it could start the topping pattern that's possible
on the daily chart.


June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

824.50-825.25
827.25
834.00-834.50
842.50-843.00
847.75-848.00


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

818.00-817.50
810.75-809.50
807.00
804.50-803.75
798.00-797.25


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1305.00-1306.00
1309.00
1313.75-1314.75
1324.50-1325.25
1329.75-1330.50


June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1293.50-1292.50
1285.00-1284.50
1276.00
1266.50-1265.50
1254.75-1254.00


June 2009 Dow futures resistance
symbols: emini = ymm9

7835-7840
7872
7938-7982
7996-8001
8036-8040


June 2009 Dow futures support
symbols: emini = ymm9

7754-7751
7698-7692
7678
7647-7642
7608-7601

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

REMINDER:

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

http://www.tradestalker.com/members

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


Good Trading,
Mike Reed

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)

www.TradeStalker.com

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.
*************************************************

Trading Video: "Pop and Drop" from the 60 EMA

Hi Everybody,

Yesterday I recorded a couple of videos for you.

On Tuesday the ES turned down from the 60 period EMA on the
5 minute chart 4 times before dropping to its 810.75 low. In
the first video, I enter near the high of the day, and
the first rejection at the 60 EMA. Because that 60 EMA acted
as dynamic resistance, any of the 3 other rejections made
good entries too. The second video is follow-up.

First Video:
http://www.tradestalker.com/fizzle60/index.html

Second Video:
http://www.tradestalker.com/60fizzx4/index.html

Hey, we only have 4 spots left for the upcoming RBI Trading
Camp. Go to the link below for more details and to register!

http://www.tradestalker.com/RBI-Trading-Camp.htm

Good Trading,
Mike Reed
TradeStalker.com

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)

TradeStalker's RBI Update 04/07/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 7 / 2009

(Published Since 1996)

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


Dateline: 6:38 pm eastern time, 4/7/2009

The market gapped down below the Monday lows on Tuesday and
after 20 minutes there was a reversal back to the upside.
The bounce popped over the 821 resistance, but the 60ema on
the 5 minute chart turned into the lid and the move was
reversed from 822.25 on the ES. The 816 level was holding on
pullbacks, but it finally was broken and the market went
into trend down mode. The ES reached 810.75, just over the
810.25-809.50 support and bounced up to 819.50 with 15
minutes left in stock trading. The move didn't stick and the
ES dropped 8.25 points to 811.25 before firming into the
close.

The indicators are very mixed, mostly in neutral territory,
at the moment. As for prices, the market is getting its
uptrend off the lows somewhat damaged. The ES has a gap
below still to fill, however it held above the 810.25 level
on 3 drops on Tuesday and recovered all three times.

Given that, we will likely get two-sided action on
Wednesday. If there is a rally from down here that goes to a
lower high on the daily chart and then reverses, it would
set up a bigger drop than we have seen thus far. If the
market continues to head lower, then a reversal must occur
from the 804.50-803.75 zone on the ES or above, otherwise a
drop back into the 700 handle is in the cards on this leg
down.

On Wednesday look to short early strength if there is a
reversal in the first 30 minutes or so. If that plays out,
then the 810.50-809.50 will hold on a pullback if the market
is strong. If the market breaks under that area, it must
quickly reverse, otherwise the downside pressure could pick
up some pace. If it is reversed, then a decent snap-back
rally could be in the cards.

June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

819.00-819.50
823.50-824.00
827.25
834.00-834.50
842.50-843.00
847.75-848.00


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

810.75-809.50
807.00
804.50-803.75
798.00-797.25


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1286.75-1287.50
1296.50-1298.00
1305.00
1313.75-1314.75
1324.50-1325.25
1329.75-1330.50


June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1272.75-1271.50
1266.75
1262.50-1261.50
1254.75-1254.00


June 2009 Dow futures resistance
symbols: emini = ymm9

7797-7803
7835-7840
7872
7938-7982
7996-8001
8036-8040


June 2009 Dow futures support
symbols: emini = ymm9

7711-7703
7678
7647-7642
7608-7601

CLICK HERE for FREE Trading Articles and Videos!
---------------------------

REMINDER:

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

http://www.tradestalker.com/members

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)


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


Good Trading,
Mike Reed

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

www.TradeStalker.com

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.
*************************************************

Day Trading...Sexy or Self-Defeating?

Day Trading sounds like a provocative, sexy career doesn't
it?

Most visualize young men in crisp expensive suits, driving a
sports car, trading half days, making thousands of dollars a
month, and building fortunes by the time they're 30.

Ok, now for a reality check...

Picture this, a man in his late 40's or early 50's, has 2.5
kids in college, a mortgage, 2 car payments...sitting in
front of his computer, eating Rolaids, white knuckled with
that "deer in the headlights" look. "Pull the trigger? Don't
pull the trigger?"

The hard facts are that the majority of day traders fail.
Sad, but oh so true. Why do they fail? They don't have the
knowledge they need to compete with the big boys. They don't
have a consistent game plan. They make money in the morning
just to give it back in the afternoon. They try for a "home
run" and lose substantially, so they trade even bigger to
try to "make it back"...they lose even more and blow out
their account.

We have heard these stories time and time again. What's
really disappointing...these nightmares could have been
prevented!

How can you be a confident, consistent, successful day
trader? Learn a PROVEN method of trading...simple as that.

Mike has been trading for more than 27 years, the method he
uses is time tested and rock solid. There is no shelf life,
no expiration date. Doesn't matter what time frame, doesn't
matter which market...doesn't matter the volatility. The
strategies Mike uses are based on something that never
changes, and that's human emotion.

This is your opportunity to find the light at the end of the
tunnel. Mike can't make you a successful trader, but he CAN
give you the tools that he uses everyday to be consistently
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Mike is going to show a handful of traders EXACTLY how he's
been successfully trading for more than a quarter of a
century. Mike is going to share with you, trader to trader,
the strategies he uses everyday to gain an unfair advantage
over other traders.

You can't afford *not* to get the trading education that you
need to be profitable. This is a commitment to yourself,
this is a commitment to your trading, this is a commitment
that you can believe in...

There are only 6 spots left...register now before it's too
late:

CLICK HERE FOR MORE DETAILS!

To Your Success,

Julie
TradeStalker.com

CLICK HERE for FREE Trading Articles and Videos!

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)

TradeStalker's RBI Update 04/06/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 6 / 2009

(Published Since 1996)

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


Dateline: 5:57 pm eastern time, 4/6/2009


A lot of caution flags were being waved after Friday's
action and the ES started the week by opening down 11 points
on Monday. The first decent bounce fizzled at 831.50, which
coincided with the 20 and 60 period ema's on the 5 minute
chart, and the ES dropped to test the 823.00-822.75 support
zone. The market bounced, but it failed at updated
resistance at 827 and the trend down action continued.
Shortly after noon the ES reached an 818.75 low, which was
just over the 818.00-817.50 support zone, and a choppy
uptrend got started. The 823 level was exceeded and the ES
chopped its way to up to 834.00 with just 5 minutes left in
stock trading. The ES pulled back a bit to settle under fair
value.

The ES is currently range-bound and a trip to the top of the
range *could* be in the cards. That is at the 842.50-843.00
area on the ES and it has been rejected twice now.

There are 2 scenarios that look to have equal odds at the
moment. . . First, IF there is a rally back to that 842.50-
843.00 area on the ES or slightly lower and then the market
turns back down, it would be setting the stage for a 1-2-3
top on the daily chart. A reversal from around 838 on the ES
could do the trick, so beware if that occurs. The other
scenario would occur if there is no sign of a reversal. A
push through the 842.50-843.00 area on the ES could
accelerate the move up towards the 847.75-848.00 area. If
that happens and there is no reversal, then the 861.65 area
on the SP500 cash is the last good resistance before the
875-877 zone. Somewhere up there, likely not further than
the 852.50-853.00 area, should then make a high for the
move. Another possibility is that the market drops hard
on Tuesday, which is possible if 818 on the ES isn't
defended.

On Tuesday look to short early strength if it fizzles and
reverses in the first 40 minutes, and especially if a
resistance zone is rejected. If that plays out, beware that
the first decent pullback should then set up a good buying
opportunity. The ES should stay over the 830 level if it's
going to remain strong. If that is reversed, then a deeper
drop will be in the cards before buyers step back to the
plate.



June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

834.00-834.50
842.50-843.00
847.75-848.00
852.50-853.00
861.65 {SP500 cash} **reversal/old breakdown level**


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

830.50-829.50
822.25-821.75
818.50-817.50
810.25-809.50


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1318.00-1319.00
1324.50-1325.25
1329.75-1330.50
1338.75-1339.50


June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1308.00-1307.75
1295.50-1295.00
1285.75-1284.50
1254.75-1254.00


June 2009 Dow futures resistance
symbols: emini = ymm9

7938-7982
7996-8001
8036-8040
8089-8093


June 2009 Dow futures support
symbols: emini = ymm9

7910-7906
7834-7830
7804-7799
7734-7725

CLICK HERE for FREE Trading Articles and Videos!
---------------------------

REMINDER:

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

http://www.tradestalker.com/members


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


Good Trading,
Mike Reed

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)

www.TradeStalker.com

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.
*************************************************

TradeStalker's RBI Update 04/05/09

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

TradeStalker's

R.B.I. Trader's Update

4 / 5 / 2009

(Published Since 1996)

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

Dateline: 5:34 pm eastern time, 4/5/2009

On Friday the ES sold off to 822.75, which was just a bit
over the 821.00-820.00 key support area, and then turned
back up. The rally reversed after reaching 838.00 on the ES
and a pullback to 829.25 followed. Buyers stepped to the
plate in the last 30 minutes and it gave the market a run to
new highs for the day, finishing off a good week for the
bulls.

The market continues to act amazingly well. However, there
are some problems that are normally red flags in a normal
market. On Friday the SP500 cash had an inside day, as the
volatility dried up at a high. Narrow range days at new high
areas often lead to reversals, as it shows a loss of upside
momentum. The only problem with this at this time is that
the ES closed just under the high for the day/week. Other
problems are that the "end-of-month plus first 2 days of a
new month" upside bias is now outside of that timeframe. In
addition, the internal gauges are either overbought, or
showing minor divergence at the new closing high for this
leg up. Finally, the Vix broke the 40 level. A reversal back
up over 40 on the Vix would give a number of sell signals.

That said, it's time to be cautious up at these levels. For
now, but nothing bad happens unless the ES closes under the
Friday lows. If there is a pullback on Monday and the
829.50-828.50 area holds, then the market will remain in
decent shape and the bulls will remain in charge. However,
with the issues stated above, it's a red flag if that zone
is broken and not quickly reversed.

On Monday, look for a shorting opportunity if there is early
strength as soon as the upside fizzles and reverses. If that
plays out, beware of another reversal if the 829.50-828.50
area is tested and held. If it isn't held, then we could see
a test of the 823.00-822.75 area again, with odds pretty
good that it will be broken.

June 2009 SP futures resistance
symbols: emini = esm9 / big contract =spm9

842.50-843.00
847.75-848.00
852.50-853.00
861.65 {SP500 cash} **reversal/old breakdown level**
875-877 {SP500 cash} **major**


June 2009 SP futures support
symbols: emini = esm9 / big contract =spm9

838.00-837.50
829.50-828.50
823.00-822.75
818.00-817.70
810.25-809.50


June 2009 Nasdaq futures resistance
symbols: emini = nqm9 / big contract = ndm9

1318.00-1319.00
1324.50-1325.25
1328.75-1329.50


June 2009 Nasdaq futures support
symbols: emini = nqm9 / big contract = ndm9

1314.00-1313.50
1304.50-1302.75
1294.50-1293.25
1287.75-1286.50
1254.75-1254.00


June 2009 Dow futures resistance
symbols: emini = ymm9

7996-7801
8036-8040
8089-8093


June 2009 Dow futures support
symbols: emini = ymm9

7962-7958
7876-7871
7844-7840
7800-7796
7734-7725


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

REMINDER:

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

http://www.tradestalker.com/members


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


Good Trading,
Mike Reed

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

www.TradeStalker.com

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.
*************************************************

10 Steps to Professional Day Trading

By Mike Reed - TradeStalker.com

Everyone trades a little differently. The trading method outlined below is MY personal approach to trading. This method has worked for me for the last 26+ years, and has helped me to avoid big draw downs since the mid 1980's. My trading strategy has helped me to make a good living trading.

It takes some time to learn my method of trading because it's based on tape reading and getting a "feel" for the market. This is *not* about a fast, easy formula to "get rich quick" while you sweat out every trade. Instead, this is about developing confidence and trading consistently without fear and without big draw downs.

Here is my 10 Step Approach to Learning My Style of Trading:

1. Practice exiting trades at break-even, using a one-tick target, a two or three tick soft stop (mental stop) and a 1.5 point hard stop. Never allow the market hit your hard stop. Exit by moving your target toward your hard stop, not by moving your hard stop towards your target. With time, all of this must become a reflex. You won't always be able to keep your losses down to 2 ticks, but only on rare occasions should you find yourself letting the market hit your hard stop. ("Rarely" means only about once every 50-100 trades after you get the hang of it.)

Even though your entries won't be good enough in the beginning to make a profit trading these tight soft stops, your entries will gradually improve until you turn the corner and become profitable.

Learn exits and entries separately. Don't let the one influence the other.

Taking losses this way takes dedication and discipline, so stick with it. It's the key to confident trading. If you never take large losses (and rarely medium size ones), the fear of loss pretty much goes away, and your confidence grows. Especially after your entries improve enough to support a "scalping" type exit strategy.

2. Every trade in all market conditions begins as a scalp. Let me clarify this: if you're in a choppy market and you're looking to get small gains, like a point or so, manage your initial hard and soft stops exactly the same way you would in a quick trend or any other type of market. That means keeping losses as close to 2-3 ticks as possible, taking lots of break even trades and exiting every time the market doesn't give you instant gratification (within a minute or so).

No matter what the market is doing, you must demand that it moves in your favor soon after you enter, otherwise you get out as close to break even as possible. This means you'll be closing a lot of trades near break-even within the first minute. This is the foundation of learning to trade for consistent gains.

3. Don't worry about the commissions on break-even trades. If you do, you'll hold on to losing positions, begging them to turn around for you. This is called hoping. In this business, this type of hoping is the kiss of death. Your money-making trades must move your way in a few minutes or less. When trades don't act right in the first minute or so, most of them will hit your hard stops.

So don't get hung up on the fact that your broker loves you. Who cares if he/she makes a living?

Your concern is limiting losses. I care more about this than anything else in trading. (Well-timed entries make my tight soft stops possible, so they're almost as important as the exits.)

4. Practice your entries until your timing is so good that you can reasonably expect the market to go your way immediately, before it goes more than 2-3 ticks against you. This is not easy at first, but if you stick with it, you'll get it.

5. Practice fading the emotional extremes on your entries. (Fading means entering in the opposite direction of the market's last move.) When an extreme NYSE-Tick (often above 1000 or below -1000) occurs at the same time the market accelerates into a support or resistance area, look for a price stall or reversal and fade the move. Fade the emotion.

6. Rarely, if ever, chase the market on your entries. Wait for a pullback to get onboard a trend.

I favor shorts over longs... I can get out of a short position quicker than I can get out of a long position. I don't know why. I like to say that I "see gravity better than helium." In the rare strong-trending markets where I may chase an entry, it's going to be a down trend, not an uptrend. I don't trust up trends enough to chase them. Maybe it's just a personal quirk and maybe not. I honestly don't know.

But it's interesting to note that most (not all) professional traders I've met are Bears and prefer short positions over longs. You should give it some thought and find out which direction works better for you. Are your losses bigger on shorts or longs? Specialize in one direction and trade the other direction only when things are looking real good.

7. Never let a gain turn into a loss. This will mean getting out of most trades a little (or a lot) too soon. You just have to live with it. Swing for home runs (greed) will ruin your trading. There is no mechanical formula that I know of, (such as, "move your stop to break even after you get 3 ticks gain") that will work. You have to develop a feel for how the market is acting at the moment, and use your feel to reduce your target or advance your hard stop. This comes with experience.

8. Develop a feel for the big picture movements of the market, not just the intraday action. Use the end-of-day market internals to analyze the market's mood and develop a daily bias.

9. Practice does not make perfect. Only perfect practice makes perfect. I learned this in my younger years, pursuing a professional baseball career. Perfect practice will keep your losses smaller than your gains in the trading business.

There are a lot of things involved in perfect practice. When you get tired, or when the phone rings, or whatnot, don't trade. Always, always exit trades exactly the way I've outlined above on every trade in every market condition. Always wait for your pitch, the well-timed setup for entering. Don't practice sloppy entries just because you're bored. Only perfect practice will help you. Anything else just amounts to practicing bad habits.

10. Get a mentor. I traded for 6 years before I learned to keep my losses small. My trading turned around immediately after I met my mentor and talked to him on the phone for one week. Is there any serious profession that you can learn without a mentor? Maybe there is, but I don't know of any. It's certainly not trading.

By Mike Reed

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