Today was one of the better trading days. The day started with a continuation of yesterday afternoon's down move. The lows were reached just before the US open where a rise in volume with little progress down followed by light downside volume indicated the downtrend was over (1) and a first long trade. Accumulation then became apparent along the 1765-6 level, which led to a … [Read more...]
The Damage
We've been discussing the likelihood of a significant pullback in Deep Practice for the past several weeks. The monthly chart of the S&P cash market shows an overbought position in the trend channel. Because it is occurring on the monthly chart, the odds of a significant move becomes more likely. The market sell-off that began last Thursday is the beginning of the monthly … [Read more...]
Narrow Range Resolves with Volatility
As is often the case, the narrow range day painted on Wednesday led to increased volatility yesterday. Several traders emailed with fine examples of trades made in the weakness. Nice job! In Deep Practice last night, we discussed this weakness and what the likely resistance levels would be for yesterday's afternoon rally. You can see those depicted in the green bands and … [Read more...]
Today’s Trading
There was very good trading in the S&P e-Minis today. It was especially good for a day after a holiday. Supply was evident in the overnight market, as well as off the US open. This allowed for an early short trade. Volume came in strongly to the downside, and a small congestion area resulted in a minor UpThrust and another short opportunity. Volume characteristics … [Read more...]
Free Webinar was “Fantastic!” You can now View the Recording.
We just finished an excellent free webinar on reading the market bar-by-bar. It ran for a little over an hour and went into some depth on assessing the market by its primary language: price bars and volume. We also briefly discussed what will be covered in the webinar on bar-by-bar chart reading next week. Access & Comments We’ve put the recorded webinar on our website … [Read more...]