Hello, today is Saturday February 6th and this post is for Fridays session, what a reversal !

Reversal Day on Wall Street right on schedule, is todays blog title. The Dow was down 167 points at its worst point and ended the day up +10. The S&P did something similar, down over 20 points and close up 3 points on the cash market.

It was good to see a little buying come in, to keep the bears on their toes. Wall Street is always a two-way street, don’t forget that. If you had it in your mind that today was a down day all day, you were wrong, it happens. The point is, don’t let your guard down. This is exactly why you get days like this. The majority of traders gets locked into thinking one way. When things start going against that, at first they rationalize, then they try to talk it back down, then they start praying, and then its to late and they through in the towel and buy back there short positions.

Those short early on, gave back all the gains they thought they had and then some. It is not a good weekend for those caught in that on Friday. There were clues, that today was a reversal day. Early on there was some fast looking action, but some real nice turns going on in the S&P futures.

I started my day again in the afternoon session, around 11 am West Coast. The day went pretty well. I was able to pick up some large moves, for me anyway. I stayed in and did not scale out like I usually do, because I saw what was coming. One of the trades was for 8.50 points average and a few others for several points more. I have a video of it below, if you care to see. It wasn’t perfect, but trading never is, close enough.

I did say the day before, that it was more likely that a spick down would happen first before a big bounce, than holding the line and attempting to rally. We now might see that 1080 hear pretty soon. The market did go a little farther down than I thought it might, but that is not unusual, if a reversal was in the mix.

We closed at the highs of the day and even posted gains across the board in the Major Market Index’s.

I will be slipping a post for tomorrow about the benefits of using Tick Charts over Minute Charts. So come back for that one, it will be up mid day West Coast time.

Enjoy the rest of the week-end,Super Bowl Sunday tomorrow.

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Tags: Major Market Index's, reversal day, S&P futures, Tick Charts Minute Charts, Wall Street