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Magik has written 32 entries since joining The Inflationist - Making Money in Stocks, Bonds, Forex, Commodities, Agriculture

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Web:http://www.theinflationist.com

The Inflationist have subscribed to Magik's Technical Analysis for a while. We have finally managed to convince the Author to write and to participate in The Inflationist Challenge so that we can measure its performance prospectively, and to confirm its superiority over other trading methods. The Inflationist believes in transparency and objectivity, so unless one is willing to put their strategy to the ultimate gold standard test of prospective live trading and testing, why should anyone subscribe to an unproven strategy. The Inflationist thanks Magik for having the confidence in its trading method by taking part in our Stock Trading Challenge. Magik has agreed to share with our community its magik numbers but is under no obligation to provide ongoing analysis for free.

Jan 29
Thursday

Magik Numbers: Edition 4

Filed under Dow Jones, Technical Analysis, The Inflationist Challenge 2009, Your StockPicks

MAGIK Numbers

Daily and Weekly Dow Jones | FTSE Analysis  

By Mr. Magik

29 Jan 2009 | Edition 4 

DOW   FTSE  
Daily Week   Daily Week  
8315 8092 Pivot 4276 4087 Pivot
8460 8274 R1 4339 4217 R1
8230 7895 S1 4230 3922 S1
8688 8654 R3 4441 4519 R3
8015 7519 S3 4132 3618 S3
           
8574 8464 R2 4390 4368 R2
8130 7709 S2 4180 3775 S2
95 22 % 87 28 %

 
Dow

Trade taken at R1 and stopped out for loss of 35 points. The Dow closed at 8376 on Wednesday which was a strong rally. We are expecting the Dow to trade within a range of 8460 (daily R1) and 8230 (daily S1). Swing is overbought at 95% hence on a daily basis the market is currently on an uptrend due to 2 subsequent days of overbought indicator. We expect daily S1 8230 to provide strong support, the pivot 8315 is weak support today due to the overbought position yesterday. We expect a pullback before attempting new highs. There is a key overlap points between daily R1 and weekly R2 at 8460, this level is expected to provide very strong resistance.  

Trade plan

– Sell at 8460 daily R1 and target daily S1 8230 – stop is 8500. Look to turn long again at daily S1 8230 with a target of R1 8460, stop is 8130. Trades will be dictated by the first price movement, hence buy if it retraces and sell if it does the high first. 

FTSE

The FTSE closed at 4295 in a overbought position on Wednesday. The expected trade range is between 4338 (R1) and 4230 (S1). FTSE is at the top of its range and is expected to meet resistance.  

Trade plan

- Look to sell at Pivot 4276 due to overbought % with a stop at  4318 (ystday high). Target 4230 daily S1 – (Not a particularly good risk reward ratio 1:1). Alternatively Buy at S1 4230 with target at R1 4338, stop is 4217 – this should only be taken if short trade had been taken as we do not want to fight the tape on the way down. 

Best to your trade,

Mr.Magik

No. Shares Company Bought Cost Now Profit/Loss
Position ($/point) Market Bought Entry Level Now Profit/Loss
5 ^DJI 1-26-2009 7,940.00 10,340.69 $12,003.45
Cash in Bank $300.00
Portfolio change since 1.1.2009 30.01%

Transaction History

Trade Company Code Quantity Price Date
Trade Index Quantity Price Date
Buy ^DJI 5 $7,940.00 1-26-2009

Author Archive


Magik Numbers: Edition 3
no responses - Posted 01.28.09
MAGIK Numbers Daily and Weekly Dow Jones | FTSE Analysis By Mr. Magik 28 Jan 2009 | Edition 3 DOW FTSE Daily Week Daily Week 8160 8092 Pivot 4179 4087 Pivot 8240 8274 R1 4226 4217 R1 8100 7895 S1 4150 3922 S1 8383 8654 R3 4304 4519 R3 7955 7519 S3 4066 3618 S3 8315 8464 R2 4264 4368 R2 8028 7709 S2 4070 3775 S2 88 22 % 40 28 % Dow No trade done. The Dow closed at 8176 on Tuesday which is very near the daily pivot. We are expecting the Dow to trade within a range of 8274 (weekly R1) ...continue
Magik Numbers: Edition 2
no responses - Posted 01.27.09
MAGIK Numbers Daily and Weekly Dow Jones | FTSE Analysis By Mr. Magik 27 Jan 2009 | Edition 2 DOW FTSE Daily Week Daily Week 8129 8092 Pivot 4156 4087 Pivot 8224 8274 R1 4266 4217 R1 8016 7895 S1 4092 3922 S1 8430 8654 R3 4462 4519 R3 7804 7519 S3 3914 3618 S3 8329 8464 R2 4359 4368 R2 7911 7709 S2 3997 3775 S2 58 22 % 85 28 % Dow We would have taken our trade plan for Dow at 7940 and profitted 240 points from it. The Dow closed at 8116 on Monday which is very near the daily pivot. ...continue
MAGIK Numbers
3 responses - Posted 01.25.09
MAGIK Numbers Daily and Weekly Dow Jones | FTSE Analysis By Mr. Magik 25 Jan 2009 | Edition 1 Welcome to my inaugural edition of Magik Numbers, I will be writing a daily trading plan and commentary exclusive to theinflationist on price action for both the Dow Jones Industrial and FTSE 100. The format of my trading ...continue
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