Another good day trading

I had another good day trading, which I will go over below, but first let me give you an update of what happened in the daily. 

The S&P moved right up to the outside trend line that I have been talking about the last couple of weeks. It has proved to be two things for different people. First it has proven to be like a magnet, drawing prices up into itself. Second, it has proved to be an execellent area for selling short. There will be a point soon that it will be neither of those again for the same people.  It is about to become a point for short sellers to become buyers or it will be a windfall for those shorting in that area.

I can honestly say, I do not know and don’t think anyone else does either. We can only deal in probabilities here. On the weekly chart, which I have not shown, the market looks like it wants to turn up. But it has not. And the daily is on the verge of turning up and it has not done so either. A move over that outside line will give us some additional time to recover, yet as I have said, I think longer term, it is a bear trap.

The S&P did move 35 points off the reversal point that I said was probably going to take place on Friday or Monday. Well, it happened like I said, but on Monday. It reversed off of the lows and closed higher, catching a lot of people in a short term bear trap. The next day was higher, yesterday and today we drew up to that resistance point and dropped straight down, showing solid price rejection. See the chart below, “Daily S&P” . 

The negative sentiment makes me lean to the upside. We may need to have a news event, a catalysis, to drive prices higher. Watch the news for this in the next day or two. Something like passing the stimulous package or some other short term good news item. Again, we shall see.

My day trading efforts posted solid results again today. I started out with a 1 point loss, but came right back with a few positive trades putting me at my minimum daily goal in about 10 minutes. I kept trading expecting small rallies up to the resistance area I was talking about above. We had just that, but I remember having a few losses in a row, three to be exact. My timing was not too bad – a little late, a little early – but I got right back on the horse and road the market up to 5 & 1/2 times plus my daily goal. I definitely traded more today than I usually do, but I do that occasionally. I have a few charts of some of the live trades below, showing some early morning action.

One thing I did today was splitting up half my order 1 tick early, giving me the option to split my order for a higher target. I took only a few of these, picking up more than my one point default. After that, the market ran up from the early morning and started to flounder. No direction, low volume, and a bit choppy. I adjusted myself to take some smaller targets, making sure I got filled. On my equity curve chart, I traded only half the number of trades that it said I did, because the trades were split in half. The commission is the same, so it does not matter that way, but it shows two trades as being only one because of the two exits.  Any way, it was smooth sailing from there.

I will be having a training session on Saturday morning at 8 a.m. West Coast time this week. If anyone is interested let me know by emailing me at vinnie@sniperdaytrading.com. If you have not done so, download SKYPE from my website and that will give you the ability to ask questions about my method if you want to. You will need a headset or microphone to talk. I will send you an email invitation that will patch you into my trading screen. Just follow the instructions and it will lead you right to me in a minute or so. I will call you on SKYPE Saturday morning for those interested, so let me know. It will last for about 1 and 1/2 hours till 9:30. 

Best Regards,

Vince

http://www.screencast.com/t/anUWp8jsGWG        Some live trades

http://www.screencast.com/t/DFlsOapukf                Some live trades

http://www.screencast.com/t/pAnC3Fhuv6X          Daily Equity chart

http://www.screencast.com/t/EoAWEEQk                   ”Daily S& P”

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