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...]
Archives for January 2014
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...]
Amazing Education
“. It (Primary Language of the Market) was truly amazing and educational. I have spent 10 times the money on trading education in the past to get one tenth the knowledge and education.” Cam from Australia … [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...]
Near Picture Perfect!
“Dear Dr Gary,t hat was something to witness...minutes after your explanation on one of the trading principles all 4 indexes fire off the same set up in the night session. Love your teaching! Now that's the truth in trading the markets, a Great Instructor!” Paul from Illinois … [Read more...]