As traders we search for repeating patterns.  The last two trading days have offered the same pattern. Levels were violated into the Close and the market trended into the Close.  Financials could be bought or sold in the direction of the trend and held into the Close.  Let’s discuss. 

Yesterday into the Close SPY traded between 81.20 and 81.50.  We broke SPY 81.20 around 3:45 and trended down for the rest of the trading day.  Today into the Close SPY 79.50 was our trendline.  Just before the Close we traded sharply down towards 79.10.  I thought this move was too steep and advised a trader to Close out AMB at 12.75.  My sense was the market would probably test the trend line at 79.50 next.  There was no sense holding AMB back towards 13 as SPY most likely tested 79.50.

And we tested SPY 79.50.  We leaked above it and couldn’t hold.  We leaked above it again.  Time went by.  And finally we saw a sharp convincing move above 79.50 and in fact above 79.60.  Go time!  When we see this our focus must be long.  And since the Financials are most in play they should be bought.  It is like going to your local grocery store and shopping for a party.  Pick up some chips, cheese and crackers, Sam Adams, pretzals, and whatever else is on sale.  As a trader pick up some JPM, MS, WFC, or whatever else is on sale.

So into the Close I feasted on MS.  Delicious.  Never a down move.  

The market has trended nicely the past two trading days into the Close and you ought to note this.  Into the Close, Connor, one of our better traders, was asked if he was selling JPM.  He replied, “Hell no.  I am not making the same mistake today.”  Well said.  Yesterday he did not hold long enough into the Close. Today he did.  That is what we call progress.  Beers on him.

Big game tomorrow for UConn.  Not sure if I will have time to blog since I need to focus on preparing mentally for the game.  

Best of luck with your trading!