Many companies are continuing to post slightly better than expected earnings numbers: UPS, AMGN, POT, LLY, DOW, BMY and others. However, some are beating expectations and then offering very cautious forward guidance like AMZN. The tepid outlook along with ongoing global recession fears is keeping a lid on the Bulls.
Pre-market futures are down, indicating a slightly bearish open. The market came back quite a bit off the lows at the end of the day yesterday, which is still an indication that the lower zones of the loose, wild consolidation the indexes are shaping is a support area. We may get another thrust down into those areas this morning as the battle for value continues. After yesterday's selling and then late day bounce back, I'm still only interested in playing clear signals on intra-day swings. We may sell off a bit in the morning, but I will be watching for a bounce back eventually, and then I want to see how it holds up or fades off from there. I talked about volatility increasing with the earnings reports, which it did, but the fear of financial collapse in the emerging markets has agitated that volatility considerably, so I will continue to be nimble with this market.
1:30 pm MT: The market did bounce back as I expected, it just happened right out of the gate. The we got a big fade back down as concerns over the world-wide financial crisis rose up to choke the Bulls. In the past 30 minutes the market has once again bounced in the "Beardicat Zone" in the 850 area on the SPX. So far, the wild, intermediate term bottoming area is still holding, which is a good sign for the Bulls. It's still a risky area for the Bears, but the Bulls appear to be only holding on to the zone by a hoof.....So this battle is getting more and more critical. If the Bulls don't hold the 850 zone on the SPX then we could see a drop in to the 775 area. If the Bulls can beat down the Bears the SPX could make another run at 1000.
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Claudia,
ReplyDeleteFrom your post yesterday.. Just stick with it. Keep trading and most of all just getting the experience. You said your positive one week and negative the next, are you breaking even? I've lost a good amount since I started, but I can tell that I'm getting better, and I'm sure you are too!
Joe
Thanks for the encourgement Joe,
ReplyDeleteLost more than half af my real money account and went back to paper trading. I pretty much break even in my paper money account - guess that's better than being in the red :)
Good day everyone!
Yeah, I lost about the same a while ago and I'm just now getting back into real money. Just got in some DIA calls around 11:35 ET with the bounce on the 15s and lucky for me, as soon as I got in the market sold off and I lost a good amount on the trade. Wonderful..
ReplyDeleteJoe
Everyone i talk to says they lose in the beginning then level out then make profits wich usually happens over years unfortunately. That is in a normal market. I am down a little overall and it is kinda depressing but from what everyone says it should turn with or without the help of the market. Hopefully the market will shore up soon seeing as it has been beaten so badly.
ReplyDeleteJust think how nice it will be when Dwight is able to report during the day! Then everyones bottomline should go up. I am very excited with anticipation of watching Dwight all day!
I have to believe that we have to stick with it because hopefully this trainig will help us for the rest of our lives not just today or next month.
Good luck.
Joe,
ReplyDeletegot into a call on the pullback this am with a profit . Then entered again on the breakout at around 10:40 GOT OUT AT 11:45 AS IT BROKE THE HALFWAY POINT OF MY CANDLE WITH A LOSS. WAITING FOR A BOUNCE AT THE BOTTOM HERE 1:35 EST. WE'LL SEE
Steve, yes, I'm also looking forwrd to Dwight posting during day again - I 'm not sure how he is able to post as much as he is doing now - we are TRULY very blessed. I'm not one to throw in the towel easily so I hope to replace my negative chatter with a profitable account report in the near future. Thanks for the encouragement
Nibbled in 1 Cntrct of SPY NOV $90 call again based on support around 87 area for $5.90.
ReplyDeleteTarget real short term of 95 and I'm out if this thing reverses past 87.
Francis
Ken,
ReplyDeleteYour bear calls strategy seems like a really smart idea. Did you play them on the indexes or stocks, and how many strikes apart do you find most profitable for the strategy?
Ilona
Dwight was answering only yes to a lot of questions on VC tonight. Does any one know the questions?
ReplyDeleteJohn
John,
ReplyDeleteI'd guess IT is giving him a hard time about "coaching" and not just "educating" on his Webex. .
Things may be a little touchy there right now.You can probably figure the rest out
Hey Everyone,
ReplyDeleteI just wanted to see how many people use the 5 minute charts a lot when intraday trading. After a losing trade today, I went and backtested a lot and really found the 5m charts to be very helpful in seeing where the market is at and where it's going. If I would have used the 5's I would have gotten out much sooner because of a lower low with heavy selling.
Joe
Joe,
ReplyDeleteI use the 5's all the time. Dwight says a trader may utilize all of the time increments to determine patterns that are forming of formed, and be able to recognize the "signals" in any given time frame to determine market sentiment, probability and risk.
I missed vc wed only caught an hour on thur Dwight seemed differnt anwsering questions any body else notice that ? been watching him since march
ReplyDeleteJim
Jim,
ReplyDeleteSee above
Claudia,
ReplyDeleteI'm learning that it's all about risk management. Even if I don't make ze big profits, I want to get the chart reading, entries and exits down before I buy larger positions.
Joe,
I agree with Gary on the 5's strategy.
Gary,
I heard dinner's in about three weeks.
Francis,
Are you out of your SPY call?
Good trading tomorrow, everyone!
Joe
ReplyDeleteI use the 5 minute chart intraday allthe time too. If things get really confusing or there is a lot of consolidation thean I look t the 15. I used to never look at intraday charts - mayve every once in a while I would look at the 60d 60" chart to time my entries but tht ws before the mrket stopped trending. Lately the 5dy 5minute has given me the best results.
I think it's a shame that IT does not approve of. Dwight's teaching method if that is what is going on. We are here to learn and I think we're all adult enough to know that no one is responsible for what we ourselves decide to trade. If we don't ever see anyone actually trading live in the market - how would we even know what we don't know. This is just the most nonsensible thing to me and makes me a bit frustrated. If a coach is wiilling to teach us successful trading strategies - that's what I thought IT was all about - right????? Sometimes it's not only the market that doesn't make any sense :)
Thanks for being REAL Dwight
Laurie,
ReplyDeleteGood. I'm hungry but broke! But I did put a few dollars aside for such an occasion. Never pass up a good meal! I look forward to seeing everyone here at dinner with our guest of honor, Dwight.
Oh BTW, I'm getting rid of Bozo.I may be showing my age!
ReplyDeleteI agree with you Claudia, you said it best when you said: how are we supposed to figure out how to trade without seeing an experienced, successful trader do it. Dwight's style of coaching showed me how a trader trades, and what his background thinking is and that is exactly why I made a point of tuning in to Dwight's Virtual coaching sessions. It is a shame and disappointing that Investools is not approving of Dwight's open style of coaching.
ReplyDeleteAs Claudia said how would we even know what we don't know. Much of the time I do not know what I should ask about, and am always grateful for the information you give during virtual coaching, Dwight.
HI Laurie and everyone,
ReplyDeleteYes, decided to hold my SPY Nov $90 call over night in view of the good closing. However, S&P Futures just took a real dive to the day's lows around 874ish which is most disconcerting.
We'll see how things open.
Francis