Today is Thursday, January 28th and the market did not follow through from yesterdays run up.

At the open, the market was in a very good spot for a pull back, because in the night trading, things moved up pretty nicely. We saw close to a 10 point move with the follow through from yesterdays close. It wasn’t the 20 points I thought we might see but it was still a good move. Well, since that move came when no one was able to trade it, the market at that point set itself up for a nice retracement, which was exactly what we had. Just after the open, it rolled right off a nice little ledge and dropped pretty hard for the next few hours. After consolidating at the bottom for a spell, we did see a nice rally back up of some significance, only then to fail again. Pretty typical market action

Currently, the daily momentum is down as well as the 120 minute time frame (2 hours bar chart). If the market is going to attempt a reaction rally from this point, it is going to have to first get over 1088, then the next hurdle is 1093. Those are two area’s that need to get taken out if the market sell off is going to slow. Other than that, the momentum is pointing down currently and the path of least resistance is that direction. Each day unfolds more pieces of the puzzle and pretty soon, the picture will become clear what the next move will be, straight down or reaction rally, putting in a pivot.

Over all, I still do expect that the market will trade back to the middle of its long-term range on the daily and weekly charts. That is quite a long ways away still and it could take some time to get there.

Tomorrow I will be back in my home office and will do a little trading sometime in the morning. It should go well. The price action is pretty normal and I am sure, enough good trading moves to get a few points.

Below is a video from yesterdays price action. I almost made it to the end of the session. There were some nice moves that you may not have seen, but I think you will get the picture.

With yesterdays post in mind, the chart is marked as the turning points take place. I don’t say that I could or would be trading all of those turns, I would only need 1 or 2 small trades from the pool that is on the video to make my daily goal. Once a traders goal is had, I feel it is best to close it up and move on to something else, but that is me. There is a good reason for that. You keep the trading struggle to a minimum, as I know I have said before.

This is a trading method that I follow. The indicator that I brought up afterwards,  just happens to matches the overall method. This can bring some degree of confirmation to a trader, who is trying to bring it all together.

Again, all of these turns are not really meant to be traded. It takes a lot of concentration to keep up the pace of trading for the whole day like this. Again, that said, this is really pretty typical of the trading day. After looking at todays price action, I don’t see anything that is very much different. A lot of really good trades. Using discretion on which trades to take is defined in the trading method itself. I often, do take trades counter trend, but other less experienced traders may not feel comfortable doing that and that is fine. Going slow and only taking the best trades in the direction of the trend is really probably the best strategy for new traders, but you will have to exercise your discipline and patients to wait through some of the setups.

The turning points that I have marked, is really something that happens everyday, and those turns are identified by something other than the indicator I have up on the screen. I don’t say what that is or how I changed it, but it is something that is not going to change. If it did, the markets would have to do something it has never done, since its beginning and I don’t that is going happen.

The second video is the stock charts that I mentioned in yesterdays video. A 60 minute bar chart of AAPL, Apple computer and daily chart of Rimm. The same is true here as I have said above. The signals are generated by the trading method, which is as I said yesterday, not rocket science. If I were to put up one of the indicators I use, like the one in the first video, It will match near perfectly generating the same signals, which only confirms or coincides with my trading method.

I think you get point, so I will end it for today. If anyone has any questions, feel free to contact me, vinnie@sniperdaytrading.com .  I do have my email back up and running and getting my computer back up as well, it was a lot of work and slowed me down, while traveling, I am glad that is over.

Good Trading to All !

Related posts:

1. Today’s Turning Points in the Sell Off
2. Live S&P Futures Trading Video’s Today
3. “TURNING POINTS”, what are they ?
4. Key Stock Market Turning Points
5. Sniper Day Trading Method, Works On Stocks Too

Tags: 60 minute bar chart, momentum, Price Action, trading method, turning points