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...]
It’s Not Uncanny; it’s Wyckoff!
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...]
Stock Market for Valentine’s Day
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...]
Stock Market Weakness Generates Short Trade
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...]
Weakness in S&Ps
Today looked positive because it rallied late in the day to close well off the lows and above the middle of the range. And, buyers did step in. However, I don't see this as strength. Tomorrow is the last day of the month, and so we may see the market try to hold as fund managers look to chalk up a good month for the beginning of the year. We'll see if they can do that. … [Read more...]