Afternoon,

Some days you are the windshield, some days you are the bug. Today… I was the bug. Well, I keep thinking that the market will start trending again…someday. But not today. By trending, I mean that the market will go more than a point before turning around and going the other direction. The direction of the market was down but with no conviction. All that being said, here is the update.

 The market opened basically flat and sold off. There was a trend line break below the 56 EMA followed by a trader’s trick set-up. The trade was up 1.40 points (just 1 tick below where we could move or stop to break even) before turning around and stopping out. In the next 6 bars, the market rallied 7 points with no set-up. The market then wallowed around before having another trend line break to the downside followed by another trader’s trick set-up. This trade was also stopped out for another 2 point set-up. Part of the reason that these trades did not work is that the Russell 2000 was in a 7 point range. I once knew a trader that would not trade unless the price took out yesterday’s high or low.  Here is the chart for trades 1 and 2.

Trade 1 and 2

Click on chart to enlarge.

The market continued to chop around in that 7 point range for the next hour before having another trend line break below the 56 EMA followed by a trader’s trick set-up. The trade went sideways giving us 1.20 points heat (and me a big case of heartburn) before making it’s objective to the tick. The final trade of the day was a bobber set-up right as the price was breaking the 1st hour low. As is my practice, I stop trading at 1:00 pm CST on Friday afternoon. Here is the chart for trades 3 and 4.

Trade 3 and 4

Click on chart to enlarge.

So for today, there were 4 valid set-ups with 2 winning trades and 2 losing trades for a zero net profit, ignoring slippage and commission. 

Will it ever get easier? You bet. Trading is like the ocean…it ebbs and flows. Some periods are more difficult to trade than others. You have to look over a longer period of time to get the bigger perspective.

I will be out of pocket tomorrow as it is my 54th birthday. If you have any questions or comments, I will be back to my computer Sunday and will answer them then. Till then, here’s to better fishing.

Best regards,

Ron

This is not a solicitation to buy or sell. 
There is a risk in any investment.