This post is for Mondays session, December 21st, posting a little late.
Mondays trading turned out to be a mover, to the upside. The market has pushed itself back up to the top of its range and in fact hit that all elusive number I had called for so many months ago, 1120. Mondays we hit 1120.25 on the cash market S&P a full 50% fibonaci retracement of the full trading move over the past two years.
The momentum did turn rather quickly with the size of the move and currently is up on the 120 minute chart. As I write this post it is currently Tuesday a.m. and today happens to be the day that the new investors sentiment numbers come out. I will not see them until Thursday, but the price action that takes place today is reflective of those numbers. So today’s close on Tuesday, is going to be very important.
I am anticipating the numbers to turn more positive which in-fact will be more negative in reality, but we will have to see how it turns out, first with todays close and then with the numbers themselves.
The month of December has traditionally been a positive one and some have even called it “The Santa Clause rally”. In the last 20 years, Decembers trading has shown a gain 16 out of the last 20 years. At this level, it would be 17, but we are not finished yet. It is noteworthy and that is why I point it out.
Below, I have posted the trades I took for Monday. I have not traded for several days, but thought I would squeeze a little in. The market was just coming off a big rally up and then I come in. Well, I knew better, to try to play the trend, because we were coming into overhead resistance and coming off a large move up already, which started in the pre-market. That is why I have a different model to trade out of, based on price action conditions. It is not rocket science for me to switch to “Scalp Mode” and pick up a few trades and points in both directions. All I do is follow my “Turning Points” as I have shown you before. In-fact I mentioned it in my last post. The thing to do is just follow it. If you do, the trades work out, if you don’t, they don’t, pretty simple. I did an OK job in following my signals, I could have done better. You can see where I came in and compare that to the signal turns in the link below.
If I was trading earlier, I am sure I would have had those break outs to the upside. Starting January, I will definitely be trading the open and getting my points for the day will be easier and quicker for me. The pace is faster and I like it. Trading after the market has slowed, is not what I prefer, but as I have said before, I have to take what the market gives at the time I decide to trade. A trader can not impose there will on the markets, so you learn to take what it offers at that time.
I absolutely love the way I approach the market. I could always stay in “Scalp Mode” if I want to, but I would at times miss out when the market shows signs of life and has legs. I have my other screen set up to accomodate this type of run away condition and can easily take advantage of it, if it presents itself. It is not really hard to switch into this screen, one click of the mouse at the bottom of my Trade Station Platform and I am there. A screen set up to accomodate large moves that are very clearly defined that only require you to follow it. It always boils down to that, can you follow signs to get to your destination, they are clearly marked.
In my blog, I often talk about things that hold traders back from following their signals. If you can get a handle on the trading discipline that is required to execute, you will make it. You first need the method or plan and some may call it system, but what ever it is you follow, it needs to be clearly defined and show consistency. Then you need to exercise your mind and build your character to follow through with it. If you don’t have the first one, the second one will not help you and if you have the first one without the second, you will still be in trouble, the two go hand in hand.
Start the rebuilding process now, start exercising your mind, write out your plans on paper in your trading journal, hopefully you have one. Start exercising your body as well, this will get your endorphins kicking in and give you some blood flow and hopefully motivation, be consistent. Get going now, see the picture in your mind of how it all comes together, but it takes action. It is not going to happen only by thinking about it. Once you see the big picture, break it down into small bit size pieces. What is it going to take to get step one finished or started, then on to step two. Break each one of the steps down as well, if it requires more work. If you write it out and take this approach, you will be moving forward towards your goal and dreams. This takes you out of the dream state and puts you in the driver seat. Do you know where you are going? When will you get there? What will it be like when you arrive? Taking charge of your life is up to you and all it really requires is one small word “DECIDE”. Have you?
