Today is Wednesday, June 9th and the market is hoovering in a neutral stand, waiting upon its next move.

The general stock market moved higher only to be met with “Price Rejection”. That would be its inability to overcome overhead supply. It did make a run at it, of which I saw it coming. I also saw the the exact resistance area and started to lighten up as I came closer to my overall target area in today’s trading. I was looking at S&P 1075 as a destination point for the last rally. Once hit, the high was reached for the day and down she went for a -20 S&P point reversal,  closing -6 points on the S&P and -40 points on the Dow.

Well, the market held up over the last few days and that is a good thing. I don’t have a lot to say today, only that we will need to stay above the previous lows recently set to keep this rally alive. That low was established during yesterdays intra day bottom.

The market will turn very negative and continue its bearish move to much lower levels if yesterdays low gets taken out.  The downside line in the sand has been drawn. On the reverse side of that, given the fact that the market was able to rally off that very key support area, is saying there is a real good chance we could make it out of this, at least short term.

The sentiment numbers came out today, but I won’t know what they are until Thursday evening. I will update at that time.

To recap, I see big movement on the break of today’s high of 1077.25 and yesterdays low 1041. That gives us 36 S&P points to play with or 360 Dow points. I will be watching both of those numbers for an increase in trade volume and trade velocity.

Yesterday I posted a live video on U-Tube of the days action and is in the video gallery on my website. I will post a snap shot of the days results as well as today’s results below. Two real good days.

My first two trades today were for small losses on small size, then hit a nice small trade short and reversed my position at my original sell stop point, something I don’t usually do, and the market kept going where I added on for larger size, once the trade showed its real intentions.

The two charts are in my middle time frame and are exactly reflect the price action in relation to my smaller tick chart size. It is easier to post more bars and show more of the day this way.

Yesterdays trades, I  just started to take the small trades were I could. I think I took 3 or 4 one point trades until I saw a big move coming and got a little anxious and jumped the gun. You can clearly see based on the my custom trade indicators that I went in way early and was only asking for trouble. I did switch to my T-1 short term model for a tighter entry, but it did not help as the market was just not ready. I wanted to pull the cake out of the oven before it was cooked, not a good idea. As I state in my notes on the screen, I had the right idea but was early and a bit anxious. I hug in there and was not afraid to load up on what I originally saw and milked the trade for  about a 10 point S&P move. I followed it up for another little topper after that, a great day.

I have the trades marked up on both screens as to where the key turning points are and it is just awesome, as the turning points were crystal clear. You just need the courage to trade them and you will and would have been sitting pretty. I would bet in yesterdays market if I tried to trade the whole day, I could have gotten at least half of the 75-80 points the day showed in available points. That would be 35-40 points of profit in one days session.

It would take a lot out of me to keep up the concentration one would need to do that, but I can see it is possible. For every point in the S&P emini futures it represents $50 dollars. If you trade 3 contracts that is $150 dollars per point x that by 35-40 points and that is a little less than $ 6k in a single day only trading small size. I totally believe in a session like yesterday, that it could have done that. I just don’t want to work that hard, as it is possible I could loose concentration and make mistakes. It is safer to trade for a modest sum and move on.

Usually, I only trade for 2-4 points with an occasional windfall day, like yesterday. Today was somewhere in between, but would call it above average for sure. As I mentioned earlier, we can always make mistakes, not trade our plan and or method and let emotion take over. You can not expect to do your best if you get anxious. I have a tendency to come in a little early at times and those are the trades that I get stopped out. I and or we, need to remember to let the trade come to us. If you look at yesterdays trade chart below, you will see I totally jumped the gun. The trade indicators are there to help you not get out in front of yourself, to hold you back until you have the momentum on your side.

Entering to early most of the time is an emotional response of “fear of lost opportunity”. I have blogged about that before, but you can see a clear example of it in the chart. I can try and justify it any way I want, I blew it. I am not perfect and know that I can always do better.

Being a good trader is not about being perfect, that will never happen, but if you can keep your mistakes to a minimum and take advantage of the gift trades the market occasionally gives you, you can do well. Consider this motto on occasion as well.

Get in – Get out and – Be done.