I thought it might be useful to do a follow up on yesterday's post.  In that post (which you can read by clicking here) I outlined my game plan for today (Monday).  As a quick re-cap, I was looking to trade long after a morning flush down into the 1405 area. Things didn't evolve as  planned.  Instead of a morning sell-off, the market rallied higher into the pre-US session … [Read more...]

Here is a look at how I construct trades.  I never just wade into the market because I see something happening in the last few price bars on the chart.  Never.  My trades are constructed from background conditions and market structure.  The following trade is one I took live before a group of over 175 traders on Friday. The Game Plan As I explained to the group in advance of … [Read more...]

On Tuesday, the US Stock Market, as represented by the S&P 500, put in a new high for 2012 at 1426.68 (SPX - S&P cash index).  This is the highest level since May 2008.  It then sold off for three days.  On Friday, it was oversold.  I was in a live trading session with David Weis, Gavin Holmes, Steve Philips and Ken Yee.  Looking to be a buyer, a nice Wyckoff Spring set … [Read more...]

In my last post, I was expecting a pullback.  Price action had begun to stall; it appeared more difficult to move the market up.  Recent pullbacks in June, July and early August have been rather deep, especially for a bullish market.  That pattern did not hold this week.  As the market tried to pull back, price held its gains. You can see from the daily and 54,000 Tick … [Read more...]

The US Stock market as represented by the S&P e-Mini Futures has had a strong rally off the August 2nd lows.  The very high volume on that day indicated a lot of selling, but also quite a bit of buying, too.  We see this by the position of the close. The next day shot up and broke above recent highs at 1387.50.  The lows of the next two days held this level, but I wonder … [Read more...]