Today is Tuesday, June 15th and the market is on a roll, since the open, moving back up and over the last resistance.
So, I am writing this before the close of today’s session and we are currently up 19 points on the S&P emini futures and +165 on the cash Dow Jones and finally +50 on the NASDAQ. So far a great day.
This is what I thought would come as I wrote about yesterday. I said that yesterdays reversal was not much to worry about as it was just some temporary overhead resistance that the Dow and S&P was encountering and so far that seems to be true as the market has broken out over all the overhead resistance.
I noticed a change in the resistance numbers, since the contract month changed and what was resistance at 1106 (what I mentioned last week several times) is now 1102.75. Yesterday the market came within one point of that, 1101.75 and backed off. Those that wanted to sell into the resistance early, jumped on board and caused it to come up shy of hard resistance.
We came all the way back up today and went through it, so far, by a few points and currently +21 points as we sit at 1107.50. So, we have gone several points over the hard resistance and we are seeing a lot of short covering right now. Those that did not believe we would rally are also jumping on board, to push this up even higher. This will probably continue until we reach those numbers that I talked about in yesterdays post. The average was 1132 S&P emini futures (low was 1122 / high 1042). Once we get into that area, plus or minus, you should be very careful with long term positions and such. This is just my opinion and is not considered investment advise. But my opinion is as laid out clearly in yesterdays post.
Another update 12:47 West Coast, +24 points and trading at 1110. We will soon hit S&P futures 1122 to start, likely in tomorrows session.
Trading the daily or weekly charts is no different than trading a small tick or volume chart on the index’s or any other trading instrument. It is knowing what the market does time and time again, with advances and retracements. How it deals with support and resistance and the likely moves there after.
The markets always have a certain flow and or rhythm tied to them. It throws off a vibration, as does most emotionally tied instruments. Dialing into the frequency is what will take you home. That takes time to uncover, but it is a skill that can be learned. You often have to think in reverse, since if you use human logic you will most often come up holding the short end of the stick. The patterns and setups in the market place are 100% repeatable and they happen every day. I see it as clear and plan as day. It is no different than picking up the newspaper and reading the headlines.
On the flip side of that, if you don’t know the language, you will misinterpret what it is saying. It would be like thinking you know how to read and understand Spanish, but you only took a few classes, although you are sure you got it down.
Well, I hate to break it to you, but you will need a lot more schooling than that to understand this language. If you have a good teacher, and one that is dedicated to your learning and if you are willing to put in the time to learn this language, than you will over time be able to communicate and understand what is being said. With that, you will be able to get to where you want to go in your trading career.
With the knowledge and confidence of being able to handle yourself in the trading arena, you can write your own ticket. Do not underestimate what it is going to take. I know many try and figure it out on there own, for various reasons, but that will not get you “home” until very late in the day, if at all.
I will admit, I was one of those people. For so many years I learned through trial and error, with lots of error. I never purchased a trading system or method of any kind, never a newsletter, never anything trading subscription related other than data feed, since I have been following the markets, the early 1980’s. I am not proud of that, but it is what it is. I think, I had a touch of “Pride” — “Ya Think”.
If I did, I could have cut the time it took to understand so many of the trading concepts that I enjoy today. You don’t have to wait that long, but that is a personal choice. The trading knowledge will not come to you so easily as there are so many trading styles and ways to trade. How do you know which one will work best and or, if it will work at all.
That is why I have over the last few months been trying to show my readers the correlation of just two trading indicators I have up on my screen. One above and one below. They match each other closely as well as link up to other larger time frames, (not shown).
I don’t and can not show my whole screen because that would be giving to much information and reserve that for people I am mentoring. What I show is a “Tiny” part of the whole trading method. There is a lot to learn. I have two trading manuals that cover over 150 pages with very detailed information on the whole of the trading method. I recently completed new DVD video’s, spanning several hours, linking all the method together. I send out updates at the close of the market, showing where the method entries and exits were for the day and why (very important for ongoing learning), so you have constant input of where you should be trading and again, why. In addition to that I will work with any student who wants personal screen time to go over past, current and live data. I commit to working with any student until he or see understands the trading method in whole. All of this helps me as well become an even better trader.
Today’s trading, I went into the NASDAQ market again, as well as the S&P, results below. Video of S&P trades and screen shot of NASDAQ trades. Solid gains in both markets with little draw down, which keeps the struggle to a minimum.
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- Sniper Day Trading Method, Works On Stocks Too
- What is Sniper Day Trading ?
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- Market Insight from Sniper Trading
- Trading Questions answered – Sniper Day Trading
Tags: overhead resistance, Sniper Day Trading Method, Support and Resistance, trading method
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