Today is Tuesday March 9th and the markets have moved higher over that last few sessions.

The S&P is currently within striking distance of its old high, creating a “Double Top”,  where the Dow Jones is still pretty far behind. The shining star is the Nasdaq as it has already surpassed its previous high from early January.

The market sentiment has increased only slightly this last week to 42% bulls, which is OK. When it gets to around 55%, that will be a sign that there is to much optimism and we could see serious selling pressure. Back in January just before the drop, we got to around 53% but the level of bearishness was at a 10 year low of 15%. That was a strong contrary position for the market to trade the other way. It was only when the bullishness increased into the 50% + area did the market take its cue and drop as both were at extremes by historical standards.

We currently have room to rally, but are coming up against previous highs and that double top in the index. I don’t have any predictions so to speak but currently I have noticed the volume weaker than I would have expected. That to me is not a good sign.

Currently the market has some very clear key spots on the charts that need to remain intact for the uptrend to continue. If we break them, you can bet that you will see the sellers. If there is little volume and conviction to buy, we just may see it on the other side, when that day comes.

I have been very busy this last week and have had little time to trade. I am not to worried about it, it is just temporary and will be back at it pretty soon. Any points I have missed out on, I will make them up. I did trade for a few moments on Friday and picked up 1 point, no trading Monday and only traded for about 10 minutes today and caught 1.25 points. I have been working on producing some new training video’s and updating other training material as well as re-working my website. Lots of work, but its still fun work. I love what I do and am very thankful for it all.

Here is a couple of screen shots of my tiny trades. No big deal, that is for sure, but it is better than a loss. When things settle down, I will focus more on my own trading and pick up more than enough to make up for my shortcomings.

I still hope to change my personal schedule around to trade the open. Somehow I need to do that. There have been days last week that the afternoon session is producing nothing like it used to. The morning session is the way to go, like the first 60-90 minutes. Trading during these hours will most often offer several points in the first 30 minutes. So that is where the opportunity lies.

I will have to personally challenge myself to get up at the 5 am time needed to prepare and settle in for the 6:30 am West Coast opening. It has not been easy, but I know what the rewards are.

That’s it for today,until tomorrow;

Good Trading

Related posts:

1. S&P 500 bounces off double bottom & Trading Lesson
2. Top of Trading Range Fast Approaching
3. Major Index’s Currently at 62% Retracement Levels
4. Index’s Making Room to Run, buying time
5. Index’s Marking Time

Tags: contrary position, Dow, rally, selling pressure