This post is for Friday’s session July 9th and we did see a continuation in the uptrend very close to 1080 as called.

The cash S&P hit 1078 with the futures just behind it in Fridays session. After the close, the futures dropped, several points coming off its closing high, with that sell off continuing in the night trading Sunday night. On Friday, I was looking for a possible reversal coming off of 1080, but we never got there. It is possible that on Mondays session we might see that reversal. I will have my eye on that if we make at least one push up on the open which gets close to that 1080 number, + or – a couple of points.  There is a little more room to move past that number, but I do see resistance coming in from a few directions and confirming with other markets.

We will have two trading sessions to make an impression on the bears before the Investment sentiment survey is again taken. Those numbers dropped 4% last week bringing us closer to a bullish signal. Currently at 37% with 35% needed to push things up a bit more than just a minor swing of a few days. These buy signals can last for several weeks. So, if such was going to happen, we would need to come back off these highs and make an impression on the bears that this latest bull move was just a fake and the real move is yet to begin.

If that is the case, it would coincide with the natural rhythm of this market and we could get a late 4th of July bang. That is not the popular belief out there and I say that with a little hesitancy, because everything looks awful out there. But earning season is just about to begin and we could see surprises, enough to move this market.

I again will say, that I am a big big long term Bear and think this market is going to tank, but just a fake like this would be a perfect recipe for taking out all of the shorts first. Make them suffer first, put the squeeze on them, shake them out, or how ever you would like to say it, but don’t make it easy for the shorts. If in-fact this market does this, it could set up a very nice move later in the year for another crash.

That is a mouthful, and should not get ahead of myself. One thing is for sure, if you know how to ride this market, you can clean up once the moves come back. Overall, the market has been acting pretty good, with moves in both direction and with size, except for Friday.

Friday was a very soft day of movement, especially the mid day. There was very little movement from 9 to 11 am West Coast on Friday. If you tried to trade that, you likely did not do well. I to often trade when I feel like trading and it cost me on Friday. I got myself caught in that trap and did see my first daily stop out in a long, long time. I did have my chances, but if I hit – 4 S&P points in any one single day, I am done and such was the case. I still did very good for the week with Thursday more than covering my losses on Friday as it was over 3 times my daily goal.

I will shoot for 2-4 points per session, with a bias for 4 points.  My daily stop out point per session is -4 S&P points. A minimum 2-4 times per month, when the conditions are right, the market will just give you extra points. Those are the days that you have to make extra. You don’t actively seek it, the market will tell you when those days are and when it talks you listen. If you make extra points 2-4 times per month, if you have a day that you get stopped out, it is no big deal. You just get back on the horse and ride. It is best not to go looking for the big score every day. If you do that, you will be forcing the trades, not a good idea.

Trading is supposed to without * Effort , without * Force, without * Straining, without * Struggling and without * Trying. It should be effortless. Hard work is in the training and preparation, but while trading it should be without any of the above, but should be natural.

Compare a world class runner vs someone who rarely runs. To the one a 5 mile run is easy, while a one mile run to another is a great struggle.

Think about it. If you struggle and need and or want help, email me. To ask questions and get answers. You don’t have to be a member of Sniper Day Trading, I do want to help traders see “The Light”, so to speak, but if you need formal training, I have that very much available as well. Just a reminder, we teach all our students to read and understand “Price Action” with the trade indicators being extra.

Good Luck and Good Trading to All.

Related posts:

1. Breakout to upside to continue for Monday
2. Can you say “REVERSAL DAY”
3. Looking for S&P 1010 on Monday’s Open
4. Daily Reversal

Tags: 4 S&P points, daily stop out, long term Bear