Today is Wednesday February 29th and we saw a late day sell off that took the market down to some key support in the daily market. I was looking for 1362 in yesterday’s market but it looks like it came a day late towards today’s close.
The market sentiment has stayed the same again this week, but hovering at the high end of the range. We came very close in reaching a market extreme here, but backed off and now the same for the last two weeks. I would expect a bullish bias, until everyone is invested before a meaningful sell off gets started, but today’s closing numbers are very important. A break below today’s close will shift or slow at best the daily momentum.
I will post today’s chart of the day here first and will post yesterday’s under that and give a few comments afterwards;
Today, I took three trades and they were counter to the early morning drop that I missed. That has been typical, as I usually stat trading when I feel alert. I know I most often miss the easier price movement that takes place within the first hour to 90 minutes of the day, but I do have enough confidence in the trading method that I can still pick up what I am looking for within each session, which is usually between 2-4 S&P points.
I often have to remind everyone that the trading indicators are not the trading method, but they are consistent with it. There is a complete separate market rational for all the entries that don’t have anything to do with the indicators.
I usually mark what I call “turning points” on the screen and continuation points when they are appropriate. A trader, I feels needs to know what the price pressure points represent and how that is interpreted into tradable points. Taking what the market gives easily is a good strategy for long term success. Always shooting for the stars is nice, but it can often lead to frustration and mistakes.
With that said, there are lots of clues within the trading method to trade for bigger point returns. One can always trade the next series of time frames higher for fewer trades and higher reward, but you need to invest more time and patients to get that. That is usually more than I am willing to pay and so, stick to what I can take easily and safely when I am ready to trade.
I will post yesterday’s trades below; Tuesday February 28
Yesterday, again missed a few easy early morning trades but got stuck with a tight narrow range for some time. This did cause me to trade for much longer than I really wanted to. I did a few things wrong and a few things right and ended the session with a small gain.
You can see that the indicators do a fairly good job of identifying where the market turning points are but this again is a reflection of the price. The price is always first and is what is traded. With that said, not every signal as shown is a strong buy or sell and that goes for every day. Some show stronger turning points than others and some are to be avoided. All of that is within the method and not the indicators, as they will not tell you that, but the method will.
Tomorrow is another day and hope to start a little earlier so I can finish earlier, sounds like a fair trade off, but we will see, until then good trading to all.
Vince
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