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Master Che
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I developed my own trading system, based on magnetism (physics) and velocity vectors...I find the center of the compression, and factor time with volume which determines the outward velocity vector (linear expansion) thereby predicting price and time. I have a market update service and I manage... More
  • S.P. minis: UPDATE 0 comments
    Jan 15, 2010 10:56 AM



     last weeks FR (Federal Reserve) intervention on Friday (1/8/10)

    after the Bad Non farm news

    and their blatant intervention Sunday night

    altered the charts dramatically


    Last Friday at 1139.50 and we should of dropped minimum 13.25 points and maximum 15.50 points instead we closed the day up at 1141.75. These are internal range cycles (like Mother Nature and the four seasons) but the Sunday night (blatantly) intervention changed everything.  It’s completely of place in regards to the chart range cycles and all linear geometrical structures  from 10/25/09.

     The best way to look at the charts is to delete the Sunday night intervention

    As such the charts are geometrically perfect.


    Never the less this decline will reach 1106.00 on this leg down (actually we go lower, to 1071.00. but at 1106.00 there will be a profoundly powerful bounce back up, which in no way shape or form should exceed the Friday high (before the intervention) at 1139.50

     But the key is the Federal Reserve.

    In my estimate the Federal Reserve they are currently are long 1,231,295 contracts on the March contract, their average price is 1104.00.

    So the question at hand is;

    What do they do at 1106.00

    My guess would be They will buy in order to prop the market back up.

    This is profoundly important, because if they buy they are increasing their exposure and possibly increasing the downside potential.

    If I were them and we clearly trade below 1104.00, for example 1050.00 or 950.00 (before the March contract expires) I would just let the contracts expire with a hefty loss, as opposed to closing a portion or all of the contracts. Closing (covering their position  will only add fuel to the fire to the downside, which in turn literally obliterates they hefty position in the bond market, the loss on the bond market would well exceed the loss on the current March ES contract.

     Yesterday, last night and today they have not bought.

     Immediate term:

    Expect a bounce at 1130.50 to 1130.75

    I recommend all shorts to take profit at 1130.75

    and reload on the bounce back up to 1139.25 and maybe to 1142.25




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