I’m going to let the charts speak for themselves tonight as all of the trend lines I just highlighted are going to be very obvious to most traders by this evenings conclusion. Now I’m not saying that these support/resistance levels are to be invalidated, just the opposite. The Dow will probably make it back near the 10k area, however it will take the path that most people won’t expect to get there.
Here’s an example. I was short going into the open today and I failed to profit off of those shorts today. How could that happen when some markets hit new yearly lows? Even though I was wildly bearish I failed to cover when I should have, and instead refused to believe the market could sustain it’s move higher when it started rebounding. Luckily for me I was smart enough to not let gains turn into losses as I excited pre green lights on my screener. I did make some money today, but not nearly what I should have. Remember to always learn from your mistakes and do not allow frustration to set in. Tomorrow is always another day to trade and it’s important to allow yourself to remain open to new opportunities. This would be a good mantra (#1) to focus on when you experience similar situations.
Tomorrow’s retail numbers are most likely already baked into these markets so they shouldn’t be a factor. I like how today’s volume picked up in the indexes and many individual stocks indicating that mutual funds were most likely doing some pre holiday shopping. Don’t underestimate the power of seasonality, as this is traditionally a bullish time of year and I have a hunch that everybody out there is just looking for a reason to get happy after the few months we’ve had.