Today is Thursday, April 23rd and the markets are not giving up their multi week advance, just yet.
With one hour before today’s close, the S&P is up slightly and the Dow is up about 30 points. Recently the market has flattened out and one would come to expect that a deep pull back is brewing. That may happen, but don’t just bet on it yet. We will need to see more in the next couple of days.
The market sentiment has not come out for this week, but it did move up 6 % to from last week, which would represent a neutral reading of around 44% ( 35 is bullish and 55 is bearish). I would definitely be watching those numbers. If the bullish reading increases to the 55% range, start looking for a multi week short entry. It may not come for some time, we will have to see.
There is more room on the upside for this market to slowly drift higher. The current daily trend is still intact, although it is in dangerous waters. Generally, if the market keeps going higher from here, I think there is a greater risk for a sell off of a greater magnitude. If this does happen, the bullish sentiment will continue to inch higher slowly drawing unsuspecting new money into the markets. A lot of people are currently taking the bait. Be careful, this market can implode.
There are so many things that can go wrong with the whole structure of the economy, banking, corporate profits, unemployment, another wave of foreclosures and the list goes on and on. Don’t get sucked in, be careful. I just read on Yahoo news the 10 largest countries that could collapse. Mind you, some of them are small, but Mexico was on the list as well as Argentina and Venezuela.
The Mexico one would be very bad and it could easily spill over into our country. Again, caution is in order. That being said, there will be a lot of increased volatility once the news starts to heat up. Let’s hope it stays quiet for a while. I can handle low volatility just fine. If things do change, I will be looking to do more Pyramid type trading to capture some of those bigger moves, but with very low risk.
Today’s trading went just fine, I did not stick around too long. I just picked up my daily goal and called it a day. I am still not feeling very well and I am not too sure what it is. It is definitely slowing me down from doing other things and I am not really liking it too much. I plan to rest up over the weekend and whatever is bothering me, I hope it’s gone by Monday.
Today’s numbers went like this: 3 losses, 9 gains and $1,200 in profit. I had two split trades, the first one for a loss and one after that for a gain. Mostly, I traded all in/all out today. The first two trades were losses and the second one had a two tick slippage to it, making that loss worse.
Both of the first trades were bad trades. What I mean by that is I did not go into it doing and seeing the right things. If I take a loss and I did the right things, no problem. But when I go outside my trading plan and go in too early or too late, I get a little miffed.
I took a 10 minute break and tried to get things sorted out and did. Almost all the trades after that were gains. I am pretty sure it was because I was not feeling good, I did not have good focus and patience before those trades went off. Oh well, I came right back to catch my daily goal without much problem.
I will keep my eyes open for another pyramid trade set up and if I see a good one, I will try and record it.
That’s it for now. Have a good day.
http://www.screencast.com/t/2UAgzMNA Today’s equity chart
Related posts:
- Stock Market Showing Weakness before Unemployment Numbers
- Market Sentiment as a Trading Indicator
- Markets are holding on
- Fibonacci Level’s holding at 62%
- Market Still Holding Above Long Term Support
Tags: federal reserve, low volatility, market sentiment, unemployment
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