Wednesday, December 1, 2010

Market Wednesday

I guess it was good news for Europe this morning that set the markets off here in the US overnight and this morning.

we hit my targets for Tuesday down at 1177 (see Tuesday's chart) and that put the price once again up against the Daily 50 SMA (blue line on the 1 Day chart)

That 1177 area produced a decent bounce at the end of the day Tuesday and on the 15 min chart below it was no looking back overnight.  We have stayed pretty much in the trading range 1170-1206 since the
middle of November and on the Daily it is making a pretty good box.  It will resolve itself soon enough but likely it will be a Christmas rally as these boxes many times produce breakouts to the upside.

That's a good size range of about 30 handles on the ES and it has traveled that much about every two days for the last two weeks.  Traders getting just a piece of the action should be doing quite well for themselves.

This market is still undecided and the major uptrend is still intact albeit precarious.  Today's bullish candle is a product of some perceived good news and a bounce off the 50 SMA. Only a firm break of that 50 will signal a decent move to the downside.

This IS a traders market.  All decisions made are the responsibility of the trader and no one else. I only put my observations here and make no claims whatsoever.  Trading is a crap shoot at it's best unless you have a well defined trading plan.  An exit plan is likely THE most important thing along with proper position size.
Entry is not nearly as important as those two things.  Remember that and you are far ahead of the rest of the pack.  NEVER enter a trade unless you KNOW where you will exit in both directions.  That way if the trade goes against you, the decision is pre-determined and you are more likely to follow the plan.

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