December 30, 2008 Intra-Day Updates - Past Issues Online Version - Print Version Opening Bell Dear Trader The major averages started the week with a move lower that closed off its lows thanks to a late-session bounce, particularly in the broader market. Neither of these bearish attempts breached major support on the daily charts and at the close left us within the recent range. Although volume improved a bit vs. the last 2 sessions, it was clearly lower than normal and that should remain constant until we enter 2009. Although there are no major earnings announcements for today, traders will be watching the release of Redbook Retail Sales at 8:55AM (See Retail Sector analysis below), followed by Chicago PMI (9:45AM) and Consumer Confidence (10:00AM). Have a great trading session! The Pristine Research Team Please read our updated Tracking Guidelines Pristine Market Strategy Corner chart courtesy of Mastertrader.com The Nasdaq 100 attempted to breakdown in the morning and tapped the major support from the 12/12 pivot low helped by early weakness in Semiconductors. Such weakness didn't last into the afternoon as demand came in on the Semis and other key groups and left a minor Bottoming Tail. So it remains sideways for the time being but the longer it remains grinding at support, the greater the odds of a breakdown. Bulls will want to see an immediate bounce negating Monday's bar. chart courtesy of Mastertrader.com The bounce seen in S&P 500 left a bigger tail after tapping support. 3 straight days of an absolute absence of direction will eventually give way to a directional move, and we must be prepared either way for when it comes. In the meantine, we'll continue to post some mixture of longs and shorts but keep in mind we need to be nimble on our management until a clear directional bias can be established. Hot Sectors chart courtesy of Mastertrader.com One group that seems ripe for a breakdown when and if the market breaks is the Retail Index. RTH remains testing a prior low but the grinding action might be ready to weaken and drill under that support. We'll keep an eye for shorts on RTH and some underlyings such as SHLD, JCP (Below), JWN, ANN and others. chart courtesy of Mastertrader.com Pristine Trading Ideas Chart Courtesy of Mastertrader.com OSIP: Industry: Medical-Biomedical/Gene. Chart Set-up: Breakout We'll look to buy OSIP if it trades above 38.26 Place a protective stop under 37.00 Target 1: $40.50 Chart Courtesy of Mastertrader.com Chart Courtesy of Mastertrader.com ALTR: Industry: Electronic Compo-Semicon. Chart Set-up: Buy Setup We'll look to buy ALTR if it trades above 15.89 Place a protective stop under 15.30 Target 1: $16.50 Chart Courtesy of Mastertrader.com Chart Courtesy of Mastertrader.com DISH: Industry: Cable TV. Chart Set-up: Breakdown We'll look to sell short DISH if it trades under 10.27 Place a protective stop above 11.04 Target 1: $9.05 Chart Courtesy of Mastertrader.com Chart Courtesy of Mastertrader.com JCP: Industry: Retail-Major Dept Store. Chart Set-up: Breakdown We'll look to sell short JCP if it trades under 17.67 Place a protective stop above 18.77 Target 1: $16.25 Chart Courtesy of Mastertrader.com The Pristine View Why Do We Need a Trading Plan? Novice traders approaching this activity for the first time usually think all that they need to make a quick buck in the markets is an account and a fancy computer with the fastest processor available. While these accoutrements are obviously part of the infrastructure needed to trade, they tend to forget the most vital part of trading...Rules. Technical Trading is all about rules. It all starts with picking a trading style and a timeframe to trade. There are so many available! Someone who attends the "Trading the Pristine Method® Part 1" seminar alone gets more than 20 proven tactics which then can be applied to perhaps 6 or 7 different timeframes....complex enough for you? So Rules need to be established in terms of which timeframe to trade, which pattern(s) to trade, etc. Each of these tactics needs to be thoroughly defined, along with a description of the market environment needed to make it higher odds. Then there should be rules established for how to enter, manage and exit the positions (All this taught in the TPM seminar series and in Pristine's Trading Laboratories). And lest not forget rules for money management! In the end, rules are needed for a very important reason. Consistency can't be achieved without them. Anyone can have a winning streak, but in order to be consistent at winning, we need to make sure we do the right thing over and over again. That is the professional way! Trade Well! Watch List Longs: WPI, HLF Shorts: ANR, CMC, SHLD, JWN   Complete intra-day stock updates for today are available by clicking here. The Pristine Master Trading Plan - Glossary of commonly used terms - Trade Types Gap Quicklist - Tracking Guidelines

Please keep in mind that all comments made by Pristine instructors and representatives are for educational purposes only and should not be construed as investment advice regarding the purchase or sale of securities, options, futures or any other financial instrument of any kind. Consult with your investment advisor before making an investment decision regarding any securities mentioned herein. Pristine instructors and representatives assume no responsibility for your trading and investment results.

Information for the stock observations was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. The author as well as other Pristine employees, representatives and "affiliated" individuals may have a position or effect transactions in the securities herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

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