Today is Monday September 22nd and the markets still a little quite out there
We had a pull back below the pivot low that I had mentioned on the 60 minute chart from the other day and we did break it, but the buyers quickly came in to support the drop. That is a good sign, although still to early to tell. The drop was mostly done in the weekend night trading and the cash market just dropped to catch up with futures. Often the market likes to fill the gap, as it is called and trade back up to the upper range in a strong market and that is pretty much what happened today. We need about 6 more S&P points back up to turn the momentum back to the upside. Tomorrow should tell us a few things. If we do, it is likely the move will continue up with 1100 + on the S&P as a target. The Index’s are so close to the round numbers of 10,000 on the Dow and 1100 on the S&P that I am leaning to the side that it will get hit, before any meaningful pull back starts. It seems like a date with destiny for both of those numbers to get hit, we shall see.
Below are the turning points for today in the 400 tick chart. These are the turns my method gave me and said to buy or sell at these levels. It is all backed up with a solid reason, (not shown or explained) you just need to pull the trigger. We aspire to hit just a couple of these trades and only really need to book 2 points per day, but every day with a high degree of success. That will, over time and a gradual contract increase, will take care of the need to swing for fences, usually not a good idea.
We use only a 4 tick stop and have a 4 point stop out point for the day. Go minus 4 points and you are done for the day. That would be about 4 losing trades and we stop. We can make it up on another day, but we live to trade again, is the point. Everyone has a bad day and sometimes the market is not very forgiving, but with my approach, it is very conservative and attainable. The turning points below.
http://www.screencast.com/t/Ov2BC7KJK turning points video for S&P 9-21-09 400 tick chart
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