c03 JWBT016-Busby September 30, 2008 14:23 Printer: TBD
48 A FOUNDATION FOR SUCCESS
FIGURE 3.6 A 30-minute E-mini chart generated by the StockBoxTMsoftware. It
tracks key numbers for traders and identifies buy and sell levels.Every financial product generally has some numbers or prices that
are more important than others. The single most important number is the
yearly opening price. On the first trading day of each year, record the open.
Refer back to this price often and use it as a benchmark to help you de-
termine market sentiment. Are the bulls or the bears up for the year? Once
the winning team has been identified, it is possible to decide which side
you prefer to join.
Throughout the year I continue to track numbers. I chart the monthly
opens and form a trend line with these prices. From that data I am able to
gain a long-term view of the mood of the markets. As each week begins, I
note the opening prices and put those numbers in the context of my analy-
sis. With each new trading day I record other important numbers. I need to
know yesterday’s high and low, the high and low made in the after-hours
session, the 12:30PMS&P E-mini price and the 6:00AMDax futures price.