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YMH2, <2.618% Stretch trading range, no (3, -1), no 4.25% Stretch, 11 January 2012


Hi,
11 January:
March $5 Dow (YMH2) narrow two-way trading range, 71 points! (76 = 2.618% of the Stretch) A normal trading range more closely (very nearly) matches 4.25% of the Stretch= 123. 4.25% Stretch price extensions can be faded, with high tradeable probablilities. I posted elsewhere that price extensions near 2.618% of the Stretch should be faded. Today those fades were part of eleven reversal, 32 - 52 points, i.e., $160 - $260 price swings (intra-day margin is $500). The first 2.618% Stretch price move, -71 points, was the fade, but printed a 65 point rally, shy of the 71 point range. High level Doji candlesticks are indicative of topping action.

11 January 2012 rotations from unchanged, basis the Stretch = X:

Unchanged -1.618%X (-38 pts), +1.618%X (+48 pts), -2.618%X (71 points = today's range), +1.618%X (47 pts), -X (-39 pts), +X (+34 pts), -1.618%X (-42 pts), +1.618%X (+52 pts),
-1.618% (48 pts), +1.618% (+42pts), ...

Stretch = 29
1.618% Stretch = 46
2.618% Stretch = 76 (71 points = 11 January trading range)
4.25% Stretch = 123
High = 12409 (There has not been a close above 12400 at these life of contract highs.)
Low = 12338 (12338 was higher than the 10 January low, 12327, which is the 12 January minimum target objective on a closing basis. The projected trading range should be around 136 points, i.e., 12273, ... 4.25% of the Stretch calculation.)

A Minor Trend Reversal Indicator was not printed 11 January, following the 10 January benchmark high, 12463.