Finally an exciting market!
Yesterday, in our live Member Chat Room, at 1:59 pm, we used our fabulous 5% Rule™ to call the weak bounce line we expected on the S&P at 2,127.50. As it turns out, the S&P finished to day at 2,127.02, so back to the old drawing board to find out why our model is misbehaving, I suppose...
If you think calling market moves within 0.48 (0.025%) is useful for Futures trading – you're right, it really is! As one of our Members (Craigsa60) said yesterday:
Good day for me too on the futures. Much easier when the market moves pretty much one way all day and that is the direction you are trading. thanks again Phil. I may be getting the hang of this. Made more today because there were more times when I wasn't trading, which Phil has been telling us (me in particular) for quite some time.
At PSW, we don't tell you what to trade – we TEACH you HOW to trade – it's a subtle but huge difference. Yes, we make plenty of picks, but they are examples as we teach our Members our trading systems. We want our Members to become better traders and then they, in turn share their ideas and we all gain from the group knowledge – something our own country could benefit from by better educating people in general.
Today, in case you can't see the chart (and we have charts for all the indexes in our Live Chat Room) it's 2,142.50 or bust on the S&P as it NEEDS to take back that strong bounce line to show any real strength. If we get there and it fails, we can short at that line (2,140 would do) with tight stops above or, if 2,125 fails, we can short there too. We expect at least a head fake higher in the morning, in the very least.
Notice the word "short" keeps coming up and Craigs made his money on the short side as we were all shorting yesterday because we knew Monday's move was BS (see yesterday's post) and the call I made…