On Friday, the S&P futures (ES) gapped open up above the highs of the previous three days but couldn’t hold.  More importantly, it couldn’t break above the February 24th low of 1287.50.  On March 10, the S&Ps broke out of an apex to the downside and continued lower until March 16th to a low of 1243.25.  We had the largest volume day on the 16th since the days around … [Read more...]

The MoneyShow.com just published my article: 3 Ways to Cope with Trading Fear.  Every trade we take has the potential to bring on the stress response.  We naturally react to risky situations and threats with the emotion of fear.  Now, I am not saying that we will be fearful on every trade; just that as humans we are susceptible to percieving threat and becoming fearful in the … [Read more...]

I was up early yesterday because of the crisis unfolding in Japan.  I mentioned in yesterday's post just below that the market was due to rally.  This wasn't just a guess, but what the market structure was telling us.  Many traders were influenced by the news and were shorting but as you know, we had a 28-point rally. I will go over what I was seeing tonight in the free … [Read more...]

The crisis in Japan has worsened in the last 24 hours as the fear of a nuclear power plant catastrophe grips the East.  Overnight, the Nikkei was down 14 percent at its lows, but closed down 10.6 percent, according to the NY Times.    This adds to the 6 percent loss seen on Monday. Other exchanges – which had remained stable on Monday, were also down overnight as well.  On a … [Read more...]

The crisis in Japan is obviously affecting the markets worldwide.  Overnight volatility in the Globex session increased and we will see a gap open to the downside.  This can lead to increased volatility today.  Odds favor the downside, but let the market tell you what it wants to do.  Key levels are outlined in the chart.  Good trading today and trade mindfully!  … [Read more...]