Today is Wednesday, July 28th and the market is pulling back a little after yesterday’s gap opening higher.
We hit some resistance yesterday, as the market pushed up yet another day in face of bad news, but today, it looked clear that a pull back was in order. After early weakness, the market did present itself for new short opportunities, of which I did not have the time to trade. I got stuck in the dreaded dead zone, mid day. The market performs so much better in the AM and afternoon trading sessions, but I am partial to the AM. I don’t often trade it, as I wish sometimes I lived on the East Coast. That would make it a lot easier. I should not complain, so I will just clam up about it. All I can say is, I am working on it.
The after market trading in the S&P, is showing some strength, with the current price at 1104. I see short-term resistance coming in at 1105.50 and will likely trade back down, for at least a moment. If this market can get over the 1106 futures number, we could see 1110 pretty quickly. This is just the next couple of likely moves in the morning session. If 1106 is broken, we should trade up to 1110 or so.
The market is going to need an element of time. Time is very important in the trading equation. The stock market moves through time and space. It has a natural rhythm to it and natural trading target area’s that it will gravitate to. The element of time is something that is often forgotten. Without time, the market would not move. I know that sounds like an obvious statement, but traders often want what they want and they want it now.
The market will not give you what you want on cue. You have to be in tune with it and trade on its time. After a big market move, many times you will see the market go into a slow consolidation, of short swings up and down. With no real direction, it is in effect moving sideways trying to digest the big move it just made.
When you have a large meal at home or at a restaurant, you need to pause, take a break and then maybe have desert. The desert can be the last wave up in an ongoing move, but after that, it is time to relax and digest the meal. Every chart has a left and right side of the chart. The left side is called the acceleration phase, the right side is called the deceleration phase. There is a top in the middle that separates the two phases and that is an expression of time as the market goes back and forth, up and down, as the struggle for control takes place. This happens everyday, a balance of power is waged. We should not consider ourselves smarter than the market and we should not argue about its directions because the market is always right. We are the ones who at times don’t get it right. So what are we going to do about, ( I ), get on the right side of the market and go with it and not against it. That too, seems like an easy answer to a not so easy task, but every trader needs to find the rhythm of the market and trade with it.
I put up a couple of indicators on my screen shots to show my readers how the price drives the market to these natural turning points that we see everyday. Day trading or any kind of trading, is about getting into sync with the natural rhythm of the market in that specified time frame. This is expressed in many time frames across the board. The market is amazing and I don’t know of anything else like it. I have talked before on how the stock market is “Fractal” in nature. That means that it expresses itself in exactly the same way, but across a multitude of time frames. That is why I have put up different time frame charts a few weeks ago of the Dow Jones and the S&P in 30 minute bar charts.(U-Tube Video Gallery) This is just an expression of what is happening in that related time field as the synergistic effect is still always present. You will see the same expressions of timing and natural rhythm expressed across a multitude of time frames and that is just amazing to me. In the beginners section of my website, I have a few pictures of this symmetry as examples, that are found in nature. If you care to take a peek, just go to the heading “Beginners” and scroll down to see a few pictures of this. I am easily impressed, and I think this is just amazing, but that is me.
In my first trade today, I took profits to early and on my second trade or so, I should have closed out my second half before I gave it back for -1 tick. I did OK and came out on top, but came up short of my daily goal and was getting tired so I stopped. I new the market was going to get going in the afternoon session, but I burnt myself out already looking for movement where there was little.
Yesterday, I had only two trades, and hit it nicely, roughtly 2,3,4 points on one trade and just a small scalp for about a point on the next. Both days of trading are below.
That’s it for now, we will see if the market marks time by going sideways or pulls back, both will accomplish the pause we need for further advances.
Good Trading,
Related posts:
- Alert – Stock Market at Critical Levels
- New Stock Market Move Now Confirmed
- Got that Stock Market Turn Wrong
- Stock Market Rhythm, Can You Feel the Beat
- Sell Off Continues in the Stock Market
Tags: AM trading session, natural trading target area's, Stock market and time element, stock market fractal nature
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