Today is Tuesday February 17th, and we had a big day on wall street.
I don’t think the investment community likes the bail out plan because it more closely resembles a big government spending binge. The way I understand it, there is going to have to be more and more of this spending in future years, to the tune of 2.5 Trillion or more dollars, wow, that is a lot of money. Look for inflation to be a big problem later in the year. They won’t be able to raise that much money without raising taxes and or printing it (money). It is going to pull a lot of available cash away from the private sector, meaning people with businesses are going to have to pay more to capture some of the financing that they need. Interest rates will go up for sure and so will inflation. Right now we are in a deflationary environment, but that is going to change later this year, you wait and see. I don’t think this is good for the economy and the market with wall street agreeing. The S&P sold off about 4 & 1/2 percent and today broke that all important support that I have talked about. Not a good development for long term money. The market is always going to foretell what is happening in the economy 6-9 months in the future. So lets still hope we get a reversal.
As far as indicators go, the daily did turn negative today. I don’t rely on indicators, but it is a little helpful at times for the person who is still learning how to read price action. The only glimmer of hope that I see, is a possible fake out. Many times the previous low (pivot) gets taken out by only a slight margin and that is enough to get shorts and people who have been hanging in there to throw in the towel. When that happens a fast reversal can happen. Right now, there is no way of know what the next move is, but by reading current price action will we know if it is going to continue to break down. I would say be alert tomorrow and look for a possible reversal, but don’t have too strong a bias, just be aware that a reversal can happen, and ”READ PRICE ACTION”. That is the only way you will know what’s going on.
As traders, that is easy to figure out. Don’t anticipate much, just read. I can not state that strong enough. The times that you have too strong an opinion about market direction, to the point that you become blinded from what is actually happening, is the times that you will not do so well. You can not force you will on the market, it does not care what you think. Its job is to take you “OUT”. So, take it easy and wait for high probability set ups.
Today’s day trading went well. I picked up my daily goal in about 20 minutes or so in the morning. I started out with +1 point but only got filled on 1 contract, not 5. Then had -1 point , +1 point, +1/2 point, +3 ticks, and then +1 point. I have the trades posted below. I did come back for another round a little later after taking a break. The equity graph shows all the trades net profit. I had 14 trades, with 12 gains and 2 losses. The market was really flowing nicely. I will show tomorrow some more trades in the 233 tick. If anyone is trying to trade and follow on there own, I would recommend that you do it in the 233 tick right now. Unless you know how to weed through the possible false signals in the 100 tick, you should be following the 233 tick for now. I will explain more in tomorrow post.
Lastly, when watching the training, you may want to scroll down to the bottom and go to the right side, there you will see a button that looks like a screen. If you click on that, you will make the screen full size, it may be easier to view. I wish everyone who is follow me a great evening.
Vince
http://www.screencast.com/t/NgwtnTFbUO Day #6 Training
http://www.screencast.com/t/BK9pKrXAos Today’s equity graph
http://www.screencast.com/t/oSpzKsaqESr Some of today’s trades
Related posts:
- Day two / Sample Training
- Wall Street Plunge, down 266 !
- Day four of sample training & What a reversal today!
- Wall Street Rally – Mission accomplished
- Training series / First in a nine part series
Tags: 100 tick, daily goal, equity, interest rates, market direction, Price Action, reversal, trading indicators, Wall Street
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