Today is Monday, July 26th and we hit the 1110 number as called in Friday blog post with precision.
Friday I called out that we would see 1110 on the open and was going to be a target area for me unload the one contract I was carrying over from the weekend. (I see I had a typo and put in 1010 and not 1110). All was well, until I moved my stop up to break even instead of leaving it where it was at -1 point. In last nights night trading the S&P pushed up and pulled back just enough to hit my stop exactly and I was out. That is the way it goes.
I started to follow the market in today’s session late, just as things started to slow down. I had a few glitches in updating to the new version in TradeStation and caused me to stay up way to late. That caused me more pain, because the market had made some nice moves on the open as it was inching its way up to the 1110 area. I put on a few scalp trades as that was all the market was allowing as it approached the New York lunch hours. It was slow going for a long time, but what can we expect being summer and lunch time blues.
Things started to pick up about 11 am or 2 pm Eastern and we saw a nice move down to an area I called out in today’s U-Tube video, 1104/1105. We traded right down to that and found support. I did not trade the first move back up, but waited to see if the move was real and caught the second push back up for a few points. I was still just a touch shy of my daily goal after my last trade in the video and decided to get the rest of what I needed. The market obliged and gave me the points. That brings us to the close in few minutes, as I see there was enough behind the last move to push it a touch over the 1110. With 5 minutes we look like we are going to close near or at the highs.
I do see a long sustained move, like I had been talking about in previous postings, but we may see some pull backs here and there. The surprise is going to be to the upside as the market has done a good job climbing the wall of worry. Last week there was all kinds of bad news, one thing after another and I had even posted an article called “Wall Street to climb the wall of worry”. So far, that is playing itself out. There will be obstacles in the days and weeks ahead, but we should continue.
As I mentioned in Fridays post, I am not going to be overly concerned with the large trend of the market from here. I will be focusing on the smaller short term swings long and short as they come up. I don’t want to be distracted from calling weekly cycles and the likes. I did my part at this point and saw the turn, when no one else was looking for it and it showed up as on cue.
The market showed me something two weeks ago, said we would likely see a pull back for a few days and that was a gift to those who could prepare for the bigger move that was coming. It showed up, as we have another 100 point day on the Dow and solid gains too today’s target on the S&P futures.
The market is closed and we have 8 minutes left before the after market futures closes for its 15 minute break, before reopening. We are hovering at 1110 and appears likely we will close around that number. I find it very interesting that the 1110 number I said was going to be resistance for today has pretty much proved itself to be a significant number. Tomorrow is a new day.
I have a video posted today in the U-Tube Video Gallery, top right corner of my site, if anyone cares to watch. It is not very exiting as the market is not moving very much but non the less, it shows what I was doing and thinking a bit. Screen shot below of today’s trades. Until next time, Good Trading
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