This post is for Fridays action, July 23rd where we saw another 100 point + day on the Dow and an equivalent move in the S&P futures.

The market did put in another triple digit day on the Industrials as the market kicked in a confirmed move over the 1090 S&P futures area I had mentioned last week. Currently we are at 1101 and closed at the very high of the day. That is exactly what I was expecting as I will show you in the chart below. Before I get into that, the sentiment numbers did come out this week and even though the market had come off its highs, the numbers did back up a few % to currently 35%. That is a still a very good number and it will likely only come off back to the middle of the market sentiment range, by a rally. A number of 35% is actually a rally signal number. Last week we were at 32% in the face of over a 5% rally in the market. The number actually dropped, which is a  little usual.

The numbers I am talking about is the market newsletter writers that put out weekly information on the direction of the stock market and individual issues. These guys are usually trend followers and almost always get it wrong when a market extreme is reached. We are coming off just such an extreme, whereby you usually see a reaction of that extreme in the opposite direction. I have literally seen about 100 of these signals generated and they are very consistent and reliable. You will see on average 3 to 5 signals over the course of a year and when you multiple that by over 25 years, you get to around 100. I can’t imagine, this one is different.

This is for the longer term picture and I will not be overly concerned by this signal going forward. I am looking right now only for a short term target that I am almost certain will be met. More information below will clear that up.

So, I am expecting a short term target of 1010 on the open or even in the night trading starting Sunday after 3:30 West Coast. The target of 1010 is a short term number I see the market trading up to, on its way to higher prices. We can certainly back off once we get to the next short term target I just mentioned, but I feel it will be short lived.

So, overall, I think the market will trade higher, but may have some pull backs along the way. I posted a new video on U-Tube and will put it in this post at the bottom. It is a 30 minute bar chart of the S&P Emini futures with the night trading taken out of it, so you see the gaps from the previous days if there are any. This view is in a trending model, T-2, and will show you all the turning points since April, about 4 months.

We just went positive two days ago with a 200 point advance in the Dow, followed by a 100+ points behind it. There is about 70-80 points on the Dow and 9 point on the S&P before my short term target is reached as already mentioned.

On Friday, I was able to trade while I was resting from the previous days outing up the Columbia River. What a ride. We had a 40 foot Jet Boat all to ourselves (wife and son), with a captain and deck hand. On the way back down the river, he must have been going at least 50-55 mph, which is fast for such a large boat. I know I am off topic, but we went inside of a giant box with a large ship next to us, and it raised the water level 75 – 100  feet, so we could continue up the river. Wow, that was strange and very different. Never new they had that kind of thing. OK, back to the market.

In Fridays trading I was able to hold through a 10 point advance in the afternoon session and closed out 5 contracts right at the top and doing something I don’t normally do, am holding one contract over to get to the 1010 target area I am looking for, either in Sundays pre-market or early on Monday mornings open.

Below is a screen shot just before the close on the S&P emini’s showing my 1 contract position hold over, of which was from the add on contract I intended to hold over, with 4 points of active profit still in it. Below that is the U-Tube video showing the turning points on a 30 minute chart or the S&P emini’s, no after hours trading.

If anyone has questions, or wants more information on what I do, or wants to ask advise on what you are currently doing, I will be more than happy to give you my opinion to better help you reach your goals. My desire is help traders, period. If you need help, ask and we will go from there.

Best Regards to all my readers and followers,