c06 JWBT016-Busby October 10, 2008 20:38 Printer: TBD
72 STRATEGIES TO WIN
FIGURE 6.1 The Face Peel in action on April 1, 2008. The chart is a five-minute
mini S&P chart generated on DTI’s StockBoxTMsoftware.Throughout this day the trend was up. At 2:30PMthe S&P was trading
near 1363. Briefly, the bears attempted to shift market direction, but their
efforts were weak. They were never able to cross the 2:30PMpricetothe
downside. When the attempt failed, the bulls took charge again and kept
taking prices up until the close at 3:15PM. The Face Peel was a nice end-of-
the-day trade.
Figure 6.2 is a 30-minute chart that captures the daily move upward
and the attempt of the bears to change the direction of the action.
Another great example of this trade in action was seen on March 18,- On that date prices headed up all morning. The rally was a nice
one. It was Fed Day, and at 1:15PM, the Fed announced a 0.75-basis-point
rate cut. The financial markets had already taken the rate reduction into
consideration in pricing. Therefore, the markets initially reacted by taking
prices down when the news was aired. However, around 2:00PM, the bulls