Today is Wednesday May 26th and the market had follow through from yesterdays close only to give it up into the close.
We saw a good follow through move from yesterdays strong close, but as things started to settle down later in the session, the market sold off. I did hear of some good news on the economic front, housing starts, PPI Index and a couple other good bits of glitter, but it was not enough for the general market to hold on to there gains.
Currently the after market is pushing up nicely as the S&P is up 15 points as I write this late Wednesday evening. Looking at the daily charts, we just stayed above key support I pointed out last week on a closing basis and that was good to see. I do also see a continuation of this night trading move into tomorrows early session and expect the market to hold on to those gains and even add to them over the next few days. That is what it looks like to me. This is that bounce that I figured would come as I see the S&P futures moving up to 1110 area or so before it takes a break for the next move. That could take a few days, but we are just taking back some of what was lost over the last week.
Tomorrow, the sentiment numbers come out and it would be interesting to see how the public now see’s the current environment in the face of this sell off. We did come off a lot in the past two weeks and it is possible the trading public got very bearish this last week, which could have pushed us into the opposite scenario very quickly. We were at 43 %bullish and 35 is a bullish trigger point for the market to rally. The numbers were out this morning and most have seen and reacted off that reading already, but I will not be able to see them until tomorrow evening. You can get the link in the resources section of my website if you want to keep up to date with it yourself in the future.
In my last post, I put up a video of the S&P turning points for Mondays session. For those who trade the S&P emini market you are familiar with how it is works. We trade futures contracts to buy or sell, which gives us the right to buy in the future the basket of stocks at a specific price. Most people who trade the the S&P never really hold until the end of the contract and take delivery as you could do with a commodity, but it is traded more like a hedge against a portfolio or as a speculation instrument. That is what we do, as we trade contracts at specific prices. The smallest measure of movement is $12.50 and that is considered a tick and 4 ticks make a 1 point which then is $50 dollars. If you day trade 3 contracts, which you could do with a margin or deposit of roughly $3,000, each 1 point is worth $150 dollars. Having a daily goal of 2-4 points per day is the minimum daily goal I like to set and there are days it is 8-10 points or more.
Picking up this daily goal is not really that hard if you know when to buy and when to sell, to start. Then it is learning how to manage the trade and lock in profit and book your gains for the day and do it again tomorrow. The first key is knowing when to buy and when to sell. If you can not get that part down, you will never make it. If you don’t have a game plan on when to buy and when also not to buy, which is just as important, you will struggle.
I teach traders at Sniper Day Trading to read the price action and trade off of that. I have a few simple ways to make it easy to learn, but it does take time to build a data base of various market reads that can and will be shown to you. That part takes time to build, but in the mean time, while you build this knowledge of learning price action trading, I have a set of indicators of which I have one of them shown in today’s video to help you with timing of when to go long and when to go short. My trading method is based off of something different then what is in the video, but it compliments what we do very nicely.
To many traders are trying to learn how to trade just by following the indicators and not by learning what drives the indicators and that is, “the price”. In addition the indicators that they follow, usually are lagging and not that efficient. That is not the case with what we offer. You will never have to look for another trading program or method again as long as you live on this earth and trade the stock market. That is how I truly feel. This can be set up in any time frame to give you the trading edge you need to beat Wall Street. The Stock market is fractal in nature and any good trading method will and can be applied to all time frames and styles of charts.
When you combine this method with at least two time frame charts, the smaller chart is shown in the video you will get a crystal clear picture of what you need to do and when. The video shows clear entry area’s both long and short, exactly what you need to profit. When you consider, this trading method can be run with only a tiny 4 tick stop, (5 is OK) that is hard to believe, but the proof is in the video. The turning points happen like this every day the market is moving. When it is a choppy session, I have another screen set up just for that, with the results no different.
Traders need precision timing to be successful, bottom line. If you don’t have it, do what it takes to find it, email me for more details. This works on individual stocks just the same. Turn your trading around, protect your trading capital and live the dream.
Related posts:
- Trading Indicators – Part Two
- Day Trading Indicators Reflect Price
- Trading Indicators – Part one
- Trading Indicators – Part Three
- Day Trading Indicators
Tags: Day Trading Indicators, indicators, price action trading, trading method, trading program
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