It is Sunday evening January 3rd and the market opens in just a few hours after a long holiday break.

The trading day is going to be one to watch. We are currently directly on long-term support going back to the March 6th lows in all the index’s. We can not close even 1 S&P point lower from here without breaking this very key support. Doing so in my estimation will bring more selling.

The current momentum in the 120 (2 hour) minute chart is clearly down. The daily has not as of yet turned down, but a lower close on Monday will signal a shift in momentum for that time frame. Both the weekly and monthly are clearly still up. If we are going to go lower from here, it is going to start in the lower time frames first and then shift to the longer time frames as things move along.

One thing to bear in mind, the sentiment numbers did come out on Thursday and the bearish camp became even smaller by -1.1% to a record low of 15.6 % of professional stock market newsletter writers being bearish. That is such a low figure. I believe it goes back well over 5 years and may go back to early 2000 highs set back then. We all know what happened then.

Something, sometime is going to bring this number up, that is for sure. We just do not know exactly when. A large crack in the market will get these writers to slowly turn bearish again. It happens all the time, these people are trend followers. The interesting thing is, we are trending up lately and it is no wonder that more and more are less bearish.

The other side of the coin is, we still have room to move up in the readings for bullishness. Still only at 51.1 % we dropped by over 1% from the 52 area. What will get this number to jump up. I believe a rally is the only thing. But do we have any bullets left in the gun before we fail. That is the $64,000 dollar question as it has been said. Tomorrow will at least tell us a clue as to which way the day ends up.

The first 5 days of January is said to give the trading community a barometer for the rest of January and then for the rest of the year. I have seen this work out and have seen it be a flop. There may be a statistical edge but it is not anything we all should be hanging our future earnings on for the year.

Study price action and you won’t have to worry about this sort of thing. There are some statistical advantages but traders trade in the now, not the future. So the only decisions you can make are based on what is happening at this moment with the “Daily Price Action” and place yourself in front of the move.

Trade like a “Sniper” and pick your spots. Enter the market with precision, keep your risk low by trading counter intuitively, be a Sniper Trader. You need to stay one step ahead of the market and be positioned at key “Turning Points“. Don’t follow the herd, but use them to your advantage at these key “Trading Turning Points” and you will hit your trading goals.

I know, so many may be saying easier said then done and I can understand that. If you need structure, a trading mentor and trading support, I have my EMINI  Trading Course available to help provide what you may not have at this time. No one was born knowing how to trade. It actually goes against basic human nature and this is a skill that needs to be learned. My Day Trading Method is not hard to grasp, but it is powerful. Once the volatility comes back into the market you will likely wish you were prepared to take advantage of the powerful moves that can very often show up.

If the volatility does not show up, you will have the knowledge in “Scalp Trading” your way to your daily trading goals. Either way, having a set plan to follow is surely better than no plan. My style of trading can be adjusted to accomodate virtually any time frame because it is “Fractal” in nature. The same structure regardless of the time frame. This is a great topic to talk more about and I will try to remember it to expand on the subject in future posts.

If you have a trading method already that you trade and just want some idea’s on how you can improve it or would like to ask a few questions about anything trading related, drop me a line through Skype. My Skype name is “Sniper Day Trading”.  I will never pressure anybody to buy my Emini Trading Course, or even bring up the subject unless you want to talk about it, but I will try to be as helpful as I can in regards to your trading questions.

It is not easy to find people who want to help without trying to get something back for it and it is not easy to find people who are easy to work with and available, all at the same time. I am not perfect, but my heart is in the right place. I like to teach people how to trade profitably. Now is the time for change. Start today !