7/14/2010 Neutral Day Wrap Up and Key Levels

Good Evening Traders,

As promised, I uploaded the 1200 tick chart. I marked the trades in white. today was a consolidation day or a neutral day. Whatever you want to call it, buyers and sellers were about even and volume was light. True to my prediction in the last post, the market made a rally into the close. It wasn't exactly parabolic but you can tell that the buyers wanted to close positive on the day (7th day in a row).

There were no divergence trades on the day. Around 2pm est there was a divergence on the stochastic but the sine wave was painting red and not blue, so no trade there.

As far as key levels, they are pretty much the same as yesterday. Just look at the 15 minute chart I posted earlier. I would be cautious on a break below 1084. There isn't much support until the 1076 area. The value areas on a volume profile chart are 1087, 1091-92, and 1074 below. I could post a volume profile but my charting has a copyright clause and I don't want to get involved with that!

As I am typing this (9:30 pm est) the market is trading around 1090 so we aren't getting many clues leading into tomorrow. Making a prediction for the open is a fool's game. I'll wake up tomorrow and do the same thing I do everyday, trade the price action. Good luck

-Nate

7/14/2010 Resistance Becomes Support

Good Afternoon Traders,

I wanted to make a post on how I find support and resistance levels in the market. The chart above is a 15 minutes candle chart with a MACD and Stochastic. I draw horizontal lines at gaps and at significant highs and lows. I leave the lines on the chart until they are no longer relevant. Its almost scary how often the market pulls right back or runs right into a previously drawn support or resistance line.

Resistance becomes support on the way up and on the way down, it's the other way around. The market is clearly in an uptrend now and as the saying goes "the trend is your friend". Longs are the trades I wanted going into today. Shorts for scalps only.

Today I was looking for a long around the gap test at 1084. Futures tested this line twice and both times rallied off the support. Its 3pm as I am typing this and I wouldn't be surprised to see us go parabolic into the close! Lets see how it goes. I'll update later with the 1200 tick chart to show you how my system spotted the entries.

7/13/2010 One and Done

Good afternoon Traders,

Imagine this for a second; You walk into a casino and put a five down at the blackjack table. The dealer gives you a Queen of Hearts and an Ace of Spades. Blackjack! You just won twenty bones! Now you turn around and walk right out of the casino and don't come back until the next day. Winning in the markets requires the same mindset! As soon as you are up for the day, walk away from the table. Then watch your account grow!

Today's trade was pretty straightforward. Short high, cover low. If you did your pre market homework you would have known that 94 would be initial resistance. That was also today's pivot point. I waited for the stochastic cross and kept an eye on the order flow. Buyers ran out of momentum and as soon as the sine wave painted a red dot I went short. Got a great entry too at 1093.50. The two point target was achieved in about 18 minutes.

Two points on two lots = $200. After the trade I went to the gym and now I'm going to pick up my daughter from daycare. Enjoy your day traders and look for an update tonight with key levels for tomorrow's trading day.

-Nate

7/12/2010 One trade

Today only saw one really good trade. The entry was at 2:06 at a price of 1074.50. this was a Simple stochastic divergence trade. price makes a higher high but the stochastic did not. The entry occurs when the red dots are painted. The two point target was achieved.

On a larger time frame, responsive buyers were present at the 1066-1068 area and as long as that holds the momentum remains to the upside. Its been a slow grind higher for more than a week now and there is no sense in fighting the trend. Good luck tomorrow traders.

-Nate

7/12/2010 UPDATES

I have been neglecting the blog for to long. I am going to attempt to make daily updates for a number of reasons.

1. It keeps me honest in my trading and I feel more accountable for my actions
2. Its educational for me and you. I retain information better when I write it down or teach it to others
3. Keep sharp. Its easy to get lazy. In trading, fitness, or life in general. adding the blog to my daily routine should help keep my focused.

I have been posting charts and trades on my Facebook. From now on I will send them to the blog. The market is moving as I type. Expect an update later

5/7/2010 Katy Please Stop

Watching Katie Curric report on the stock market is like getting my teeth pulled..

Listen Katy, the US Treasury redeemed nearly $600 billion in T-Bills in the month of April..However in these FIRST FOUR BUSINESS DAYS OF MAY ALONE they redeemed $144 billion in T-Bills!!!! Annualize this number Katy!! We are printing money hand over fist to support this PONZI SCHEME of a nation.. Now Katy let me ask you, what better way to raise demand for Treasuries than to stage an equity selloff??! BINGO! Spread rumors of greek contagion, scare people out of stocks and into treasuries. Its ok though we can't expect the average viewer to notice that the 10 Year was trading in the lower 3% range today. Just tell them someone hit "Billion" button in stead of the "Million". They will believe that..

Notice that last post calls a short about 95 S7P points ago. If I was a position trader with a 500k balance in my account I would be taking the rest of the year off on that call

4/28/2010 Good Short

Good evening traders,

The market looks ripe for a short in my opinion. we retraced back to the 61.8 Fib level right to the tick 1192.00.

First target would be 1186.00 then yesterday's lows 1176.50.

set the stop above 1195.00. Use extreme caution. Every dip has been bought since February this time may be no different.

Good luck

Nathan