Today is Thursday September 17th and the markets had a bit of a pull back today. The weekly chart is up, the daily charts are up, but the hourly chart has just turned down, resting on support currently and has not technically broken down, but the momentum has slowed. Any break of todays lows will more than likely pull it down at least a little. On the same token, if it is able to take out the last pivot high, it could easily continue with the uptrend on its way to 1100 plus. It appears to have momentun on its side right now and having that round number so close, it may just try and make a run for it. Lets see what happens.
I have a chart of the S&P in short video showing the weekly and how close it is to a 50% retracement from it’s all time high of 1573. The low came in at 666 and the exact middle of the range is 1120. The momentum should carry it up there sooner or later. If it pulls back a little, that would in my opinion be a little bit better, giving it time to fill in the gaps and settle into its high ground. The faster it moves up without a rest, the more dangerous it is later on down the road. The same is true for the bottom that it put in. Take a look in the video what kind of bottom was put in back in 2001 before it took off. That was a solid base to build off of.
This bottom, is more of a V bottom and typically they are more susceptible to a re-test or at best another big pull back of 62% of this current move, when ever it ends. That to me would be the best case scenario. But long term, I am a bear. I will not let that opinion effect what I do in the trading arena, because I really only look too much smaller time frames. It is still good to be aware of your surroundings though.
I have not been trading lately, but have been working on getting my website up dated and my training material more complete. This is going to take still just a couple more weeks until I complete what I want to accomplish. When I start up again, I will be preparing to follow the program I have designed by capturing at least 2 points a day and after 5 days of profit, moving my contract size up by one. So if I am on track I will be increasing one contract per week. At a rate like that, in 40 weeks I or anyone who follows me, will be trading 40 contracts for at least 2 points per day. On the days that I hit more, than two points, my hope is that it will make up for any day I run into my daily loss limit of 4 points for the day. So I have some room for error in getting to 40 contracts with the next 50 weeks with two weeks for solid vacation. If I or anyone is able to do that, they will be bringing in $ 1,000,000 million dollars a year. If you do the math you will see this is correct.
Let me just spell it out quickly here, 40 contracts x 2 points (50 dollars each point) = $100 x 40= $ 4,000 for the day x that by 5 = $20,000 for the week x 50 weeks = $ 1,000,000 for the year and that is if you stay at 40 during the whole year and not move it up. Just getting to the 12 week in the process, trading 12 contracts takes you to $ 6,000 per week or $ 24,000 on a monthly basis, just trading for 2 points per day. Not to many people could do this, but I am preparing to be one of them. I say that humbly, because that is the only way I will be able to make it happen. I have a lot to work on and most of it is on me, myself and I.
My trading method works great and I have 100 % confidence in it. Again, the part that needs the most work, are all of the other area’s of a person’s life. Once you start trading with larger contract size, things start to happen, in your head. It is like that for most people, but it does not mean that it can not be overcome. You just have to identify the blockage and address it, head on, being willing to change to make it work. How committed are you? I know how committed I am and plan on using that and all my skills to take me on my journey.
Look for some changes on my site and that would include pricing. I will be making my trading program more affordable so that more traders will be able to take advantage of a low start up cost. I will have a back end fee tied to it, but that will be only if you are able to make your points and go forward. It will all be spelled out, so be on the look out for it in a couple of weeks.
http://www.screencast.com/t/n4SEGVZuf Turning points for 9-17-09 / 5 minute video showing
http://www.screencast.com/t/dPsStSNIs Weekly, daily and hourly charts / 5 minute video explaining
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Tags: daily charts, daily loss limit, trading method, turning points
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