In yesterday's post, I mentioned volatility had contracted and we can anticipate increased trading activity today.  I also indicated that an early morning break of Thursday's lows (1206.50) would portend further downside movement (see that post here).  That certainly occured today. Prior to the US open, we saw the market break Thursday's 1206.50 lows and continue to push … [Read more...]

Do you have trading dreams?  You should have, and they should be big ones. Helen is reading Open, Andre Agassi's autobiography.  In it, Agassi talks about the importance of dreams.  Shaken after a poor performance at the French open, Andre's trainer, Gil, tells him a few words his mother always says: "'Que lindo es sonar despierto.' How lovely it is to dream while you are … [Read more...]

On Friday, volatility contracted and the market traded inside the range of the previous bar.  Contraction in trading activity like this often leads to a jump in trading activity in the following day or two.  Often, we can see a strong, one-sided day.  The market is also sitting on top of the 1208.50 support level from November 1st.  We can expect to see it move away from this … [Read more...]

The market continued yesterday's slide and fell to just below the 1208.50 low put in on the first of the month.  Volume increased to the downside.  I mentioned earlier (in this post) that volatility had contracted and the market had entered an apex.  Today, volatility began to expand again - at least during the morning session - and the market began to push outside of the apex, … [Read more...]

Of all the mental skills a trader can learn, mindfulness is perhaps the most important trading psychology skill.  Recent scientific research from researchers at Massachusetts General Hospital shows mindfulness practice can actually alter brain structure.  Researchers studied the brain’s gray matter to see whether or not it changed after practicing mindfulness.  Those who … [Read more...]