FuturesUnLtd.Com Trade Signals Wednesday, August 23, 2000
Trade Is For Thursday, August 24, 2000
------
Comment On Last Trade:
Majik: SP: SP opened below the Maik Price, gapped down in a still yet up trending market. We bought at the open (1501.00). After a dip to the downside the market came back to give us our 7 point targeted profit. $1,750 profit on full SP.
Dow Majik trade. The Dow also opened below our Majik price, but it did not quite make it to our profit objective. It closed up 35 points or $350.
FX SP Traded same as the Majik, however we are not yet setting any target price exits on the FX signal, so it stayed to end of day yielding 9.2 points profit $2,300 on full SP.
No Dow FX trade on Wed
. ------
Majik Trade
SPU0
Majik Price = 1509.60 Trend= Up
Buy
If Market Opens ABOVE Majik Price,
>>> Again, because the market is really having a hard time making any new highs, we are going to set a profit target of 7 points again. If the Buy signal is triggered, then place an MIT or Limit Sell at 7 points above entry price.
Sell-Stop (day order) at 7.5
points below fill
Sell (contingency on whether stop and
profit target were Not hit) at market close
----------------------------
Majik Trade
DJU0
Majik Price = 11183 Trend= Up
No Trade
----------------------------
FX Trade
SPU0
No Trade
----------------------------
FX Trade
DJU0
Buy at market open of Regular Trading Hours (RTH)
9:30 ET
>> For All DOW trades, when we say market Open, we mean 9:30 AM ET
the open of the NTSE and open outcry----------------------------
>> Check Below, under the FAQ section. Several new FAQ's were added that may answer some of our subscribers questions. <<
How the Majik Price is used:
We will issue the Majik signal in 1 of 2 ways:
1) Either we will use the Majik Price for our entry or
2) We will Buy/Sell at market open (ignoring the Majik Price)
(however, we will send out the Majik Price every day, regardless if the order is
to enter on the open, or even if there is no trade at all. Just because the
Majik price is present in the email Does NOT automatically mean that we are
giving a Buy or Sell trade recommendation. It is included for your information -
some may find it useful for other purposes.)
When we issue the signal to use the Majik Price,
then there will be 3 possible entries, depending on where the market opens at 9:30 ET.1) If the signal is a BUY and the Market opens ABOVE the
Majik Price, then IF the market comes down and touches the Majik Price, we will Buy at that price. Place a Limit Order or Market-If-Touched order to enter at the Majik Price. Such as, Buy 1 Sept2000 SP at 1520.8 MIT2) If the signal is a BUY and the market opens At or BELOW the Majik Price, then we will Buy At Market on the Open* (9:30 am ET)
3) If signal is a BUY, the trade may be issued to Buy Only if the market opens Above and comes and hits our Majik price. On these trades should the market open below the Majik
price, we would not enter the market that day, even if the price comes to the Majik price.A sell works just the opposite.
===========================
Some FAQ's from clients:
===========================
Q: If we are in an up trend, but the market gaps down, maybe
way down, like 10, 20 points or more, do we take the trade (which, if the signal was give to buy on open if price is below the majik, would be a buy on the open)?A: Yes. Although that can be frightening at times. But, a good example happened on 8/3/00. We had a buy signal that day to buy at the majik if the market opened above our price, or buy at open if opening below. The market fell on a market report before the Regular Trading Hours open, and so we opened gapped down about 20 points. Our signal says BUY. So, we buy
the market at the open. The market skidded to a stop just after open and we exited at the end of day up 24.5 points. We were in an up trending market, and this signal allows us to buy the down gaps in an uptrend. This doesn't always work. No trade signal works all the time. But, it works fine for our system. (Note: We do not always issue the trade to Buy at open if market opens below the majik - in an up trend, so you must read each trade signal carefully each day for specific directions).Q: Is there a time limit for taking a trade to enter at the Majik price?
A: Yes. 3:45 PM ET. That is just 15 min before the stock market floor closes, 30 min before the RTH outcry futures market closes. When testing the system we thought the cut off time would be more like 12 or 1 PM. Maybe 2:30. But, we found a number of good winning trades that kicked in as late as 3:30 PM ET. While there were a few looser that late, generally they were small losses and there were fewer losers than winners.
*Q: How to Buy/Sell On The Open if the price is AT or Below/Above our entry price? How do we know what the price will be at the open?
A: E-mini SP data can be tracked in Real-Time for free, and the SP will be (generally) within .5 points at open. Quote.com has a free LiveChart on their web site and the e-mini will display in real-time without delay. But, this means you have to be on your PC during market open. And that won't work for the DOW.
You can call your broker's market desk right at open and get
the open price from them over the phone, but that too, you will have to call them 'right at' market open. For many people who are working or busy during the day that is not very convienient. The best way is to see if your broker will place the trade for you following our entry criteria. Brokers who do will generally charge a fee for this. If you need such a broker see our Web site for a listl.NOTE: About MIT and Limit Orders. Check with your broker to find out if they or the exchange takes MIT or Limit orders. On the emini my broker/program does not accept MIT, but does
accept Limit orders. A Limit Order is guaranteed fill only if the market moves through the price. If the market touches and bounced off, it may fill, but most likely not. MIT orders become "at the market" order as soon as the price is touched, thus they can fill above, at, or below - what ever the market gives.From
James Beals, CTA
www.FuturesUnLtd.com
(There are risks in trading futures. Only trade with money, that if lost, will not affect you and your family's life-style)