Homework for Wednesday 2008.12.31

30. December 2008
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ES - I am trying a new format for my homework.  This may not make sense, but it is initially for my own notes.  If this new format/technique seems to work, I will improve on it.  They are generated using a mix of Gann, pivot points, and rotation.

The general idea is a list of levels to look out for, where underlined are more important.  Also, "daily" levels are more important than "intra-day" levels.  Bold levels are updated at EOD to show the ones that actually came into play.

I am hoping to automate the generation of these levels.  If they turn out to be useful, it will be easy to apply the logic to any instrument... if I can automate it.

DAILY

UP: 902.75 (R2), 915.50-917.75 (R3,LR125,360+180), 933

DN: 887.75, 878.25 (LR25), 873 (360+45), 858.25 (360)

ROTATION: 887.75   (better choice 888.25, previous Close)

INTRA-DAY 

UP: 892.75, 906.75 (LR100), 912.75 (180)

DN: 884, 882.75 (90,PP,HR100), 876.75 (45,S1)

To complete the rotation from Tuesday, we hit 892.75 and bounced off as expected.  To help confirm that Wednesday's rotation level is 887.75 we need to fall down to that level and have some kind of bounce, even if small.  (We are currently at 889 and falling) There seems to be a lot of resistance forming at 882.75, which seems like a likely down target.

 

EOD Summary - 16:00 CST - As expected, we returned to the 887.75 level and bounced.  I was expecting a further move downward, however.  Though, what we did do was also technically perfect from a rotation stantpoint.   Since 887.75 was the rotation "center" and the previous primary pivot was at 868.75, this meant we needed to rise 19 points (887.75 - 868.75 = 19) from the center to complete the rotation.  This puts a top target at 906.75 (887.75 + 19).  Today's high was 908(!), then a hard fall.  After a complete rotation, you'd expect a return to center, which we made a pretty good attempt at, but the market closed before it could complete.  It will be interesting to see if this movement will complete once the market opens again.

Even though the Gann level of 887.75 worked very well as a rotation level, a more precise level would've been 888.25, the previous close.

 

Homework

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