Today is Monday, November 2nd and the Market holds.
Well, we were anticipating some pretty important market action today and so far so good. The Dow was up about 75 points today, but in order to slow down and turn this market around, we will have to see about 75 more Dow points to the upside. That is current overhead resistance and will need to break above that (9860) pretty decisively.
I think I said it all in yesterdays post, so I won’t repeat myself here again. We just need some time to see how this is going to play out and the above scenario lays out the other side of the equation. Tomorrow, I will post a daily chart of the Dow and S&P to better show you what I have been saying.
Today, I took 3 trades starting around the New York afternoon session, 11 a.m. West Coast. The first was a split trade and half came off at only 3 ticks, the second half was stopped out for -4 ticks. I was looking for the turn and just a touch early. So this trade gave me a net loss of -1 tick on half the position,- $12.50.
The next trade, I did find the turn that I was looking for and picked up + 1 point on 2 contracts and let the other half run for +8.25 points. I was looking for prices to get a little higher but I did not push it, I got out at 1035.25 and I saw a potential high for the move at 1038. We came within 2 ticks of that trade high call at 1037.50 before the market retreated 6 points.
I re-entered long right at one of my “Turning Points” at 1033 and did not take half off early like I normally do but let the market take me to exactly where I thought it would, with the whole position. Once I was getting close to my target area, I took off half the position at +5.75 points of profit. I gave the other half some room to work, so it could make an attempt to hit the high side of 1040. It did not make it and I got stopped out at +4.25 points on the other half.
That was all quite OK. I did notice that after I got stopped out, that the price did turn just after and move up to hit the 1040 level I had called.
We were running out of time, but I did and still do see 1043 before the move is finished, but that will probably come in the night session or in tomorrow market.
On that pull back, off the first good move, I was looking for prices to come down to 1031.75, which was 6 points off the previous high. Well, we came within 1 tick, 1031.50.
I make reference to all of this in the video’s I have posted below. These are live trading video’s of everything I just wrote above. The first three are tied to the first two orders and the last two are tied to the last trade.
I am not really saying how I come up with these trades on the video’s but I am reading price action. I do have a custom indicator that I have created that gives you these “Turning Points” and only risks 1 S&P point on the trade. I do build my screens up with a few more tools to complement each style of trading I am in.
If I were to trade, this mornings session, there were good low risk turning points present there as well and would have easily gotten my daily goal, (2 to 4 points)
Around 9 a.m. West Coast time, the market gave some traders a big gift, a 16 point sell off. I am sure I would have had some of that. I do see possibly getting out once and re-entering again short, but that was a fantastic move. Their were great add-on spots on the way, if you so chose to, but, what I am saying is these ”Turning Points”, happen all day, when the market is moving.
Yesterday was just incredible for my “Turning Point” signals. The market was definitely moving and if you knew where those low risk entry points where and positioned yourself in font of it, you would have done well. They were happening all day long, one after another, for huge moves. My stops on the entries were still one point and the majority worked out for multiple point gainers.
When the market is not moving much and price action is quite, I love to trade out of my T-1 scalp screen. Very accurate for short moves, averaging about 3/4 point each. I really only need a few of these to hit my daily goal and do just that, if the market is moving or not. Even in a slow chop zone, if you follow the method, it comes out. I will say, that the opposite is true as well. I am thinking and speaking to myself here. When I don’t follow my method and at times I don’t, just like everyone else, it does not usually work out and that is a good thing, believe it or not. I do not want to reinforce negative behavior and am glad the trades do not work when I go outside my method.
That is the exception, not the rule, because I do a pretty good job in following my method, plan and rules. The same will be true for anyone else who attempts to do the same.
These turning points are very easy to see and have only a few conditions attached to them before you can enter the trade, not to hard and very clear. I have all of this layed out in my 80 page manual and DVD video series. The price for my course is coming down as I have stated before. Any one interested to learn more, contact me at vinnie@sniperdaytrading.com
http://www.screencast.com/t/ZHl13cgkmDz2
http://www.screencast.com/t/fUjVI35OFQQw
http://www.screencast.com/t/JzGvvo6Ihy2
http://www.screencast.com/t/IZn8fKfNoM2
http://www.screencast.com/t/9RC43BbNjSjh
Related posts:
- Trading Lesson and Live Trade on S&P Futures Video
- Called Live, Short Term Top In Today’s market.
- Trading Environment, a key component
- Interesting Trading Lesson Today
- Market continues sell off & Nice smooth day of gains
Tags: afternoon session, chop zone, contracts, daily chart, daily goal, Dow, futures, Price Action, resistance, sell off, Sniper, stopped out, tick, trading indicators, trading video, turning points
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