Today is Wednesday, December 2nd and the market saw a new high in the S&P futures just after 7 am West Coast time this morning.

The high was 1115.50 and just 4.50 points off that all important number of 1120 which represents that 50% retracement point for this whole move of 2 years past. The market is not making it easy for anyone at these levels to figure out what its real intentions are.

Today is now Wednesday and yesterday the new numbers came out which update the market sentiment from the professional new letter writers. This may give us more insight into the next move. I have been waiting to see the last few % of these writers bit on the bullish argument, which would likely put the numbers into the extreme category. The numbers are there for the bearish side already, only 17% are bearish, which is an extreme minority position. I can see what the new numbers are sometime tomorrow Thursday. If they turn more bullish and it is very possible, the momentum has been leaning that way, it would be a strong signal that the next major move will likely be down. The last I looked we were at 51% and 55% + is usually the “Tipping Point”.

I believe there is some important unemployment news coming out in the next day or so, which could be the catalyst for the market to get going again. Time will tell us. In fact time is a very important component to the next move. You tend to get the “Pressure Cooker Effect”, as prices stay locked into a trading range. Positions are built up on both sides of the fence waiting for things to pop. That is what usually happens when the lid is blow off.

We did see some of this built up anxiety for the shorts last week. During that Dubia credit scare, the futures market bit hard on the sell-off and the market cleaned out all of the position stops along the way to minus 40 S&P points, a clear wipe-out of short positions. As the market moved back up before the open, the cash market never saw those losses and forced traders to cover and buy the market back at a loss, which helped to push us all the way back up. 

I am sure there were a lot of angry traders last week after “Turkey Day” Friday, having to see themselves cover a short rally that had no legs. There may be traders out there still in the short, with deep pockets suffering heavy paper losses.  That is the sort of thing that can break a traders account, when you are so sure that the market is going to do something and it does not. You are not willing to admit that you are or were wrong so you hold on, hoping, wishing and many times praying that the price will come back down as in the case I just mentioned.

unfortunately, this is not the circumstances we should find ourselves in when it comes to praying the market in your direction. If you find yourself doing that, something is wrong. You only need to learn how to properly trade the markets and you will not have to resort to these kinds of mental tactic’s. The market is not going to listen to or care about how you feel. If by some chance you think it did and you got the reaction you were looking for only builds for things to get worst the time you find yourself in that awkward position.

These are all signs telling you that you need help. The question is will you listen to the voice inside of you or continue to try and go it alone and figure it out by yourself. There is no easy answer to this question, but I can tell you one thing. The market has a way of making all of its participants pay the entrance fee and the tuition. You may be asking yourself, what am I talking about?

There is a cost of doing business that all traders have to pay. I have never heard of anyone getting around it, ever. If it does happen, it is as rare as hitting the lottery, not likely.

The cost of becoming a participant is and can be broken down in many ways, but all will have to commit funds. No one is born knowing how to trade, in-fact it is counter intuitive and not natural to human nature. So the potential participant has to learn how to trade. In learning you will make mistakes, for sure. Those mistakes can add up to large dollar losses and you may still not know how to trade. Reaching out for help is a way to cut down on the losses and shorten the time it takes to become profitable, but that cost money too.

So in the above scenario, you will pay one, the other, or both, before you have a chance to find the road to profitably, but rarely if ever will you get away without paying and that is the entire point. How far will you allow your trading funds to draw down before you find a solid way to stop the bleeding, recover and move forward to fulfilling your dreams.

All of this being said, you do not have to partner with me, but you should consider getting help if you are like most people. You can only learn so much in books and it is usually very different when you apply it to real world trading.

If you need a little encouragement, I have updated my website for now and have on the left side of the main screen a couple of audio scripts that I made. One is, “Holding your Concentration While Trading” and the other is “Attaining your Goals”.

I have included in my program package 12 titles, eight of which are currently finished 4 additional to be released soon, and have posted two of them for free. It is not rocket science but it can help you get focused and maintain your discipline along your journey, listen often and believe it is possible.

What ever my readers decide to do, I wish them only the very best in reaching and attaining all of your goals and dreams. Until next time !

Related posts:

1. Mental Trading Lesson Today!
2. Big Profit Day in S&P and Link to Free Newsletter
3. Day Traders, read the current price action !
4. Chart Pattern Showing Previous Resistance as Current Support
5. Addressing the Mental Side of Trading

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