|
|
| |
|
 August
21, 2005 Commentary (weekend edition)-
I'm going to
cover a few items of business, and then we'll get on to some charts. It's a
pretty exciting time for me around here lately, not only because of how
absolutely great I think the markets have been, but also because I am nearing
the end of wrapping up some fantastic projects for the Kane Trading website. I
will make an announcement in here, most likely next weekend, on the release of
some new material, and some updates on the books package.
As the
website and the 'Kane Trading project' evolves and grows I try to make
decisions on how to improve what I offer, and do the best that I can to help
people out with the limited time that I have to put into this. After all, I'm
just one person, and my focus is on my trading, not this 'business'. I still
provide as high a quality as is humanly possible for me for my readers and
students, but it does come at my own expense in terms of overdoing it.
Hopefully the oncoming conclusion of my recent projects will free me back up to
a reasonable level. This will all become clear in the not too distant future as
I lay it all out.
One thing I will be doing will be attempting to make overseas
purchases easier. I am getting an ever-increasing overseas following, and I
want to make it easier on my potential foreign buyers. If you are outside the
U.S. and felt it was difficult to make a purchase, keep an eye out for the
upcoming announcements and changes to the books page. I will put all this forth
at the same time I launch the new material. I can promise the new material will
be substantial and probably quite surprising, in terms of magnitude. I'll leave
everyone on the edges of their seats, for now.
I'm going to show some analysis of
two e-mini setups from this past week that I posted in the members' section. I mix it
up in there between before the fact setups and post-game analysis, not only of
many of the before the fact setups, but also of various things that came
together for me, and are pertinent to the type of work we are doing in
there.
"Let's move on to the e-mini Russell, which by the vagaries of my
data provider is using the actual contract symbol today, ER2.
The Russell is just phenomenal for trading,
in my opinion. I just can't get over how it moves, and I probably never will,
no matter how long I am involved with the market. This morning it ran up,
rolled over hard, and put together this impressive looking ABCD and 5-point
pattern. I also had this potential time symmetry. The Russell has been ranging
for a while, and it had formed a big ABCD right at the start point for that
pattern. This would be an ABCD 'retest' of the range low. I put some numbers on
my chart.
All the key numbers are in there, the .886 XA
retracement, the 1.618 BC external retracement, the 1.000 price projection, and
a nice .382 expansion for good measure. My area was clearly defined, within
six-tenths of a point. I had my PTA, and I just waited for an entry trigger.
The Russell obliged me very nicely. Let's see what it did.
This thing is just incredible. It bounced off
the area right at the 1.000 time projection right to the bar, came back and did
a little test to shake the quick fade the entry traders up a bit, and then took
off. Go to a tick chart, or even a 1-minute chart, and look at how many choices
of entry triggers there were, right out of the book.
The Russell
then really gets going, and just ramps and ramps. How much? Over 12 points. 12
points! Set up some of the management scenarios from the books, especially some
variations of my favorites from Trade
Management, and tell me if you see any exit signals on this chart. I
don't. This thing is unreal. And were did it ramp to, give or take? Pretty much
the range top."
"I'll wrap up with an abbreviated version of some incredible action
in the ES today.
The ES was selling and just coming off Fib
areas like crazy. It gave me a great ABCD, which is highlighted between points
2 and 3 of that 'adjusted' ML set. I anchored that set after the sell off, at
that reversal point. I put four numbers on the chart, a .786, .xxx (deleted for
the free commentary version, sorry), and .382 from three obvious swing-highs on
the downtrend, and a 1.128 price projection of that last ABCD. They all
converged incredibly tightly right at that line.
Keep in mind I did all this as soon
as it started up. The ES then favored me with another ABCD while it headed
right to my area, even hitting dead on at the time factor. I mentioned this
setup in the chat room. Is this incredible, or what? This one was so perfect I
was concerned it wouldn't play out. Let's see what happened.
The ES did that flush sell off right off that
setup. Just look at the behavior and setups this ES threw out there today. I
can't get over this ML set, or the 'adjusted' technique I have come up with, as
it works in conjunction with the Fibs and patterns. Notice that 'test' of the
ML lower // before the selling resumed. All with a set that I doubt very many
people, if any, saw."
I hope everyone saw the last Jim's Chart of
the Week on NEM. It went right to that first area. I will update that chart and
use it again for this week's chart, as it is still relevant, and at another key
area right now.
The next commentary will be next weekend's edition, posted by
Sunday evening, August 28, 2005.
|
|
|
| |
|
|
 NOTE: Reading this page or
any page on the Kane Trading website, or utilizing this website and any
material
contained herein in any way, shall constitute an
acknowledgment that you have read, understood and agreed
to all
the disclaimers,
terms & conditions, and
policies of this site.
|
|
|
This
website is best viewed with MSIE 6.0, text size set to medium, and screen
resolution set to 1024 by 768.
Copyright
© 2005 Kane Trading. All rights reserved.
|
|
