Master Che's update

My stock broker allowed me to share with you his thoughts. He is using a unique system based on Gann and magnetic physics (he is a physicist with masters at magnetics physics). 02/26/09 7:33 EST ESH9 now has trendlines (to the upside) First time since 2/2/09 Recent erratic trading is indicative of a bottom forming. We have a Complex Head and Shoulders pattern developing Failure to break above 774.75.. But one important Head and Shoulders Rule, Which most traders are not aware of: How did you arrive to the Head and Shoulders pattern? You must have come from the bottom up.. This current pattern violates this rule. Head and Shoulders must be from the bottom up to the Top. Never the less until we break support lines one must buy on the dips. Two key levels 1)Key Pivot: 771.50 2)Equalizer: 765.75 ESH9: C/T (2/20) (Combustion Tunnel) Equalizer: 765.75 Up Target: 805.00 Down Target: 726.25 ESH9: SHORT TERM Trading Ranges: Up Target: 785.25 Down Target: 745.50 Due to the fact we already have one leg in the Grave: YM and DJIA made new lows and are profoundly weaker than the ESH9.. This move up is only on ONE LEG.. It’s upside is limited: 805.00 to 807.75 All recent upward moves are spikes Which were results of a short squeeze.. In order words yesterday Shorts were the big buyers. Currently at this moment We have a tremendous amount of compression.. The most we’ve had since 2/3/09.. Lack of compression is why the ESH9 didn’t make a new low. Compression is created by volume factored by time and price: all together. ESH9 is in a Triangle..(since last nights spike) 770.25 is the key level of the triangle.. The breakout from the triangle is up. But the YMH9 is profoundly weaker And still trading under the key equalizer at 7343.. Longs take profit on all upward range movements. 785.25 is the next upward target. Resistance begins at 783.50 to 786.75 Strong support at 765.50 to 766.75 Master Che

interesting, re: the gann and the physics and the magnetics.

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02/26/09 7:36 EST I forgot to mention We have a C/T on the Daily Chart. Equalizer: 763.25 Up target: 833.25 Down Target: 693.00 Therefore we have a possibility to reach 833.25 Before making a new low on the ESH9 831.75 is the Equalizer on the ESH9 RCT

never seen the word 'combustion' applied to the market - physicist indeed.

02/26/09 10:26 EST Important Update: Compression is a natural cycle. The key cycle is the 49 hour compression cycle. We have a new C/T (Compression Tunnel) The Compression cycle is not a price cycle. Based on the 49 hour Compression gauge.. This C/T on the 49 hour cycle is the first to occur since 11/7/08 ESH9 Equalizer: 774.50 Up Target: 841.00 Down Target: 708.00 This cycle is an excellent indicator for short term to medium term direction.. Use the Equalizer for immediate direction. Break-out levels Upside: 786.75 Downside: 754.25 These compression numbers are used only for direction, due to the compression cycle, which in turns creates the volume, time and price. Final Conclusion: We switch over to the Daily C/T for our blueprint, determining direction over the next 13 days from now. Daily C/T Equalizer: 763.25 Up target: 833.25 Down Target: 693.00 Short term: 49 hours ESH9: C/T Equalizer: 765.75 Up Target: 805.00 Down Target: 726.25 Short term trend range: 34.00 points Corrective range: 13.25 points

Edited by kavaron, 26 February 2009 - 10:28 AM.

02/26/09 10:32 EST Real Time: The Drop from 777.25 to 768.25 is a hollow move. We needed to come down to 765.75 In order to increase compression needed to reach 786.75 Therefore expect a vacuum.. Upside will lose compression Downside will gain compression Creating a sideways action the next 98 minutes..

02/26/09 10:43 EST Real Time: In the event we reach 786.75 On this current move up.. We will drop immediately Un-clear to what level.. Either to 769.25 or to 763.75

02/26/09 11:16EST We just completed the up time cycle.. Now we’re in the down time cycle for the next 163 minutes 11:21 EST Real Time: Expect a decline down to 757.50 Max. 763.25 Min.

we're in the down time cycle right now 765.50 is the key level to watch we still have 102 minutes in the down time cycle in order to build upward compression we need to come down right now on support trendlines just broke c/t support trendline 763.50..key support I mentioned on the update we were heading down.. a bounce here up to 769.00 to 771.00 is very very very bearish we need to stay below 769.00 in order to maintain a bullish up move if we get above 771.00 right now..look to cover inless we make a new high..but 779.00 should stay intact for now we need stay in this price level or lower and pick up more shorts this is a down time cycle..we need to build compression to the upside not downside otherwise the cycle extends another 215 minutes which is really bad..with all the longs in the market right now In the next hour we need to reach 764.25 or lower ..not alot ..in order to head back up and make a new high if not a long position is disasterous..on the close okay next hour no new low or if we don't reach 764.25..and 779.00 stays intact...we head down to 750.75 the only question mark here is 770.75..meaning if we spend the entire hour above it not clear what happens huge inverse head and shoulders.. price target 833.00 if 754.00 stays intact and a trading break above 777.50