In last night's post, I noted that the market had entered a trading range.  How a market negotiates the top (in this case) of a trading range will tell a trader skilled in reading the chart how to trade it.  Today was a textbook example. A Lesson on the UpThrust Trade Last night, I posted a 45,000 Tick Chart to highlight the trading range.  I've updated that chart with … [Read more...]

On Thursday, I will be a panelist on TraderTalk discussing high probability trading.  Our trading community is invited. Is there a high-probability trading setup -- that is so good...that you would always take it?  Well, readers know that market structure trumps trade setups every time, but I will be discussing a couple of trade setups that have high odds in the right … [Read more...]

In last night's post I indicated that the stock market was due for a sell off, and we sold off this morning for a nice run down.   A trader wrote in saying the "predictions are uncanny." Anticipation First off, I am not making predictions.  Please don't think that.  As soon as you start trying to predict the market, you will be in deep trouble - at least that is what always … [Read more...]

The stock market as represented by the S&P 500 has been pushing ever higher for several weeks.  Two weeks ago I thought we might see a pullback before rallying higher.  Although it started to pull back, the reaction was shallow.  The market quickly reversed and drove higher. The last three days in the S&P futures suggest that we might see a retracement.  The stock … [Read more...]

Yesterday, I noted in last night's blog post about the Stock Market that the market was weak.  It had closed down three days and there was no sign that the pullback was over.  I also suggested that traders pay attention to the trading around yesterday's high.  Those who saw the up thrust early in the US session and took a short had a great trade. The 9,000 Tick Chart … [Read more...]