Here’s What’s Next After Today’s Must-See Trading Session

Okay gang welcome back!  Let’s go ahead and take a look at today because it was such a great day in the end.  We were looking for a down move today.  We really wanted to break down below the speed lines.  We wanted to continue to the downside with the stock index futures.  We had nice stochastic sells the other day.  So today was the follow through that happened once we got through the speed lines.  Now as we go into tomorrow, we are oversold on the stochastics.  Typically what we expect to see is some sort of bounce.  What I would like to see happen tomorrow is that we would get a small bounce early on followed by a drive back to the downside.  I am also looking for guidance from the DAX.  As you recall from yesterday, the first thing I wanted to see is to break down below the inventory retracement bar.  In the end, that is exactly what happened.  Here again you can see we are oversold in the short term.  I would like to see some sort of bounce tomorrow morning.  I want to see that even if the market goes down first and then gets some sort of bounce back up followed by a roll again.  Breaking this level here on the DAX is going to be important.

There are inventory retracement bars galore on a handful of the stock index futures.  I would like to see a concerted push after a short rebound with another roll over to the downside.  I know that it is a tall order because the stochastics are pretty oversold in the short term.  But if we can get the DAX pushing down, and the stock index futures pushing down, that could still lead to some good shorts.  There is an abundance of opportunities right now.

I would like to share an important story from this morning with you.  It talked about practicing what you are preaching.  In my fear of pulling the trigger and handling drawdown we talk a lot about psychology in general.  Of course that is a part of the membership with me here.  One of the things that we talk about is if you miss a good trade the next good trade will be right around the corner.  We experienced that this morning.

I just came back from Colorado and John was running the trading room on Monday.  I came back to it yesterday morning after a long night drive.  I was definitely tired and I was still able plow through the morning just fine.  I was still exhausted especially after my daughter’s birthday party yesterday.  So what happened was I missed a trade.  Whenever I have the drawing tool up the screen temporarily locks up.  One of the trades that I was looking for actually happened when the screen was locked up.  It is important to note that I was drawing what I was looking for in the market.  Overall I missed one of the trades this morning.  I recomposed myself and persuaded myself to come back by realizing the next good trade is right around the corner.  Sure enough, there were several setups that happened this morning.  We actually ran the trading room over this morning because I was still hunting and trading the room officially would have closed.  It just goes back to prove that if you miss a trade for whatever reason if you get frustrated and make revenge trades, you are likely to lose a great deal of money.  You all know exactly what I am referring to.  It is important to just wait for the right trade, at the right time, for the right reasons, and the opportunities will come.

Hopefully that is a word of encouragement regardless of if you are in the trading room or not.  If you were in the trading room you got to watch how I quickly recovered from that missed opportunity live.  If you were not I really wanted to share the story because most of because many of us miss a trade and then follow it up with a revenge trade.  That usually ends horribly for all.  If we are lucky enough that the trade doesn’t end up with disastrous results, we end up with a chance of failure in the future.  With the trading opportunities that are ahead in the next several days there will be a lot of great chances.  So if you miss one, the next great chance will be right around the corner.

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