Thursday

mAgIK - Calibre 22

1 Comment February 26, 2009 – 10:52 am |   | Permalink |  Print This Post |

MAGIK Numbers

Daily and Weekly Dow Jones | FTSE Analysis

By Mr. Magik

26 Feb 2009 | Edition 22

Dow

The Dow closed at 7271 on Wednesday. All our long positions are profitable including FTSE. This is indeed very volatile with yesterday’s low being 7157 which was very close to our entry point. I had to take some profits off the table due to profit protect risk management strategies. I am happy with the remaining half positions as the Dow zigzags its way higher. This can be a very nerve racking ride as bottoms are formed. At the time of writing Dow futures are positive 80 (7347), don’t blink. We are not exactly out of the woods just yet, if a new low if formed i.e. below 7115, all bets are off.

We are expecting the Dow to trade within a range of 7400 (daily R1) and 7150 (daily S1). Swing is neutral at 45%; we expect the Dow to trade within the range and go sideways. Support at 7150 – 7135 will both act as strong daily/weekly support.

Trade plan

Trade the range, hold long from Monday at 7150, otherwise buy at 7150 daily S1, and stop at 7100. Risk takers, Sell at R1 7400, stop 7500 target 7280.

FTSE

The FTSE index closed at 3850, in a neutral position on Wednesday. The expected trade range is between 3929 (DR1) and 3850 (DS1). Overnight futures were very positive due to Dow being able to hang on to Tuesdays gains. This means magik numbers for FTSE is one notch higher as futures are already expected to open above daily R1. Swing is neutral so we expect range bound movements between R2 and Pivot or R1 3888 as a minimum.

Trade plan

If long, just hold otherwise buy at 3850, stop at 3750 (recent low), target 3980 weekly pivot. Risk takers – Sell at daily R2 3929 stop being 3970 (high breakout point), target minimum is daily R1 3887 or pivot 3850.

Remember to keep those profits protect and stops tight, don’t blink.

Best to your trade,

Mr.Magik