Today was an inside day after yesterday’s market break. Statistically this was the most probable outcome. The price action for the bulls today was terrific. Again. I have no evidence that we are heading down from the price action of late no matter what the proselytize via the blogosphere and traditional media. And so what am I thinking about to prepare for tomorrow?
Simple. What do I buy and where if SPY holds above 114.40? What do I buy and where if SPY is holding above 114 on the open tomorrow or even 113.80 or 113.60?
I love the support I saw in AAPL 282.75ish and CAT 76.15ish and AMZN 149.50ish and BIDU 90.75ish and SPY 113.80. This is not a market to over think if you are a short term or momentum trader. Buy pullbacks. Buy the best stocks. Buy at good prices and hold for substantial upmoves.
And let me be clear, I am not predicting that we trade higher from here. I am teaching that as a trader it is our job to do the right thing. And in this market that is to buy strong stocks into pullbacks until the break from yesterday is violated.
Go prepare for this market for tomorrow.
4 Comments on “A Trader’s Thoughts”
та нам пох, главное что б шло
Your comment about teaching traders to ‘do the right thing’ is excellent advice. Today, in my twitter stream I posted the following: Focus on “doing” what is right, not on being right. We never know if a trade will work. All we can do is focus on doing the right thing. http://twitter.com/PopDocTrader
As a psychologist and a trader, I would say that having a list of rules is not enough, most traders are unable to follow rules all the time because they have internal conflicts and a need to be ‘right’. It is much more beneficial to focus on your process of ‘doing the right thing’, the outcome will take care of itself.
http://www.andrewmenaker.com
HON- creeper upper…starting to get above resistance
Mike, this is a great blog. It would be fantastic if this could be a daily or even weekly regular. I’ve been worried that the market was overbought and due to correct. Having managed to break the range and break 10700 (Dow) where I had expected a reversal and instead it ploughed straight through, I was very worried this next signal was a sign of weakness. It’s so great to get a different/professional perspective on this signal as you’ve provided above, thank you 🙂