Hi Day Traders,

This morning, June 29, 2000, the September S&P opened
below the previous day's low at 1463.10. Often a gap
down day will reverse and become a big up day, so I
waited for a breakout of the first half hour and then
for a pull back. The market made a high of 1465.50 
and I recommended buying at 1463.10. After trading
down to 1462.00 it rallied to 1465.00 but was unable
to take out the high and came back to our stop at 
1461.70. When it continued down to 1460.50, I was
able to determine that it had come back too far to
be able to rally above the high (in all probability),
so I recommended selling 1462.90. The market obliged,
rallying to 1463.30 and then started its sell off.
I recommended taking partial profits at 1453.60 and
the remainder at 1454.50 when the 53 level appeared
to be holding. 

If the market does not do what you expect, it will
usually do the opposite, and do it with gusto.

Remember, winners are spinners. Of course, it's 
helpful to know when and how to reverse directions.

Yours for success,
Ellery Coleman

The trades referred to in this article are trades that were sent to our Choice Day Trades subscribers as they happened. We have no way to verify whether or not all or any of these trades were taken in real time since we did not take them in our account. Therefore they should all be considered hypothetical.

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