Just when you thought the markets were going to break, the buyers
stepped back in and bought. The tape action of the market is showing
that a top is in place.Although the market reversed mid day today many
key stocks are still under pressure.More down volume than up volume.
We rally to resistance, then we break to support, and then we rally again.
Each rally puts in a lower high which is signaling topping action. The buyers
are running out of bullets here. The trade looks like all the funds and traders
that missed this big rally are trying not to miss the next rally. Another sign that
we are in a topping formation.
Follow the Yellow Brick Road
The road is paved with many opinions, but the charts always tell the truth. They
act without emotion and opinion. They signal to us levels that can be bought and
sold. The charts tell us what to do; our job is to listen.Watch the levels S+P
looks like 1485 support and 1530 resistance.
Knowing that our risk is always limited to our stop, we don’t have to be right all
the time. We know that the charts and the levels we find work and will give us
the highest probability of a winning trade. They are not all winners, but when
following the path, the odds dictate that you are in the best position to win.
Don’t guess or predict: React
We are not fortune tellers, weight guessers or prophets; we are traders. To be
successful we must follow the path. The path is always laid out for you. It’s your
job to follow the plan which will create opportunities and winning trades.
The road to success is paved with good intentions. Our intentions are to watch our
charts, and to find good entry points on either side of the market. We should not care
which side of the market we are on. We should let the charts dictate where we
want to be.
Follow your plan of working your list with patience to find the entry and discipline to
set your stop. Following the rules keeps your opinion and your emotions out while
allowing you to make a good solid decision based on the numbers. Numbers never
lie. Just as the markets never announce themselves.
Keep your focus
If you keep your focus and follow your levels you will keep away all the outside noise.
Failure comes when we decide we are bigger and smarter than the markets. You always
have the right to read and interpret what you see. Make sure it’s what you see not what
someone else sees.
Trading is all about you and what you see to trade. The stops and discipline you use will
always keep you in the game. Let’s keep our eye on the ball and whack the strikes.
You can do this!!!!!!!!!!!
Todd “Bubba” Horwitz