We’ve all heard the saying: “You’ve gotta have heart”…Do you really know what that means?…and have you ever experienced that emotional state? Of course you have…everyday when we trade, as the obstacles that prevent each of us from moving forward is not the market, but ourselves. Determination, Perseverance, Never Quitting are some qualities and traits that come to mind of every successful trader…We all have experienced set backs, but it is our character in handling adversity that will be the deciding factor of the outcome. Get Tough!
“Life allows us to move only in one direction…forward…there is no reverse…so put your petal to the metal and truck on!”
Second straight day of weakness on expanding volume…This type of action suggests a more important corrective phase developing, perhaps similar to January 5+% pullback. Evidence is building that money managers are indeed becoming more “risk-adverse” and adjusting their portfolios to reflect changed assumptions related to Fed’s ZIRP…Only time will tell.
Trend direction is firmly in place, so selling the rallies is now the “battle-cry” for traders…Successful trading requires well placed and perhaps timed entry points, so just do not short indiscriminately. Let’s get to the numbers:
Prior Day Low (PDL) 1834.50 becomes “key marker” to hold following two solid days of high volume selling. IF selling persists and 1834.50 is violated, THEN downside levels project 1831.75 – 1828.50 followed by 1826.50 – 1823.75.
IF the Overnight High (ONH) is penetrated and converts (holds), THEN upside pullback targets 1845.25 – 1848.25 (CPZ)…Beyond this zone is 1850.25 – 1855.50. An extreme reversal can propel price back upwards to 1858.25 – 1862.
Stay Focused…ALWAYS USE STOPS!
I am at ease with controlled risk. I will risk and I will win. I am courageous. I will take a chance. I manage risk to my comfort level. Risk keeps me on my toes, keeps me alert and at the top of my game.