BS"D

CHART TIME FRAMES TO WATCH
"...Daily/Weekly
Before the market opens, look over daily and
weekly charts to get an idea of the large-scale
trend and direction potential for the current
day’s trading..."

(Pivot Magic Trading Course)
http://www.supportandresistance.com/Asher/index.html

MARKET IN REVIEW - LITE
Wednesday (28 January 2004)
_____________________

Overnight chart looks like traders were queuing up at the
Pivot/lavender line (historic S/R) in anticipation of the
FOMC policy statement - Getting a good spot early.
(When Greenspan's involved, get out of the way!)
Following overnight trading, Wednesday morning's session
opens slightly gap up.

Both the Bulls and the Bears are hesitant to make a move
prior to the 2:15 FOMC report. Throughout the morning and
well into the afternoon session, the market trades sideways
in a very narrow range at the Pivot/lavender line
(historical S/R).

BAM! Immediately following the policy statement, the Bears
come out of hibernation.

A = On extremely high Volume (middle chart), Price Action
nose-dives through the Pivot, Close, Low, MidW, and S1.
In spite of the distinct signal (through the Pivot), it is
my hard earned policy to be out of the way when Greenspan
is involved.
Minutes later, entering on that giant red candle would have
been a bit like getting in front of a moving train! Remember,
after a report, the Price Action can whiplash back in the
reverse direction just as wildly as it plunged at the time
of the report. Sad though it was to wait out such a large
move, our risk-conservative principles keep us sitting on our
hands watching Price Action continue south to the S2.

1 = At the 3:00 Reversal Time Zone, finally an opportunity to
enter this wild drive down. The tape presents us with a
123-continuation/Doji Sandwich/red Bear Dragonfly collection
of "S" Signals at the S2/LowW.

B = Having traversed the entire Price Window to the S3 in just
a couple of bars, this second, very healthy red candle suggests
the slightly unorthodox variation of moving of the
profit-locking stop to Breakeven, "free trade" position.

2 = First indication of a reversal, DT Double-bottom, Exit.
8 points

At 3:45 the Price Action does its EOD hiccup and the session
closes just above the S3. What a day!

Asher
=] ;-)>

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