9/29/2011 Market Wrap

Evening folks. Looks like it was a wild day. I was in chicago all day on business but seems to be i missed out on some amazing action today.  After a morning gap up on positive news overseas we got a nice gap up along with a gap fill which seems to be happening a lot these days. Like I told the guys this morning on the site, its very tricky to chase these gap ups as there is a strong chance if it doesnt hold by 11am or so the sell programs come in and take us lower.    Overall it gave us a pretty good solid day to trade on the shortside till the late day reversal.  This often has happened to us and its why its so crucial to always be raising up or down your stops and constantly locking in gains.  This is not a market for the homerun hitters. Anytime you think the market is going your way it will turn you in an instant. Ive seen this a 100 times in my life. This is bear market trading to the T.  When you think you have the move nailed it reverses on you. It will totatally mess with your mind and your confidence if you are not monitoring it to the T.  The good thing is that technical analysis still is working due to the buy/sell programs. Key levels of support and resistance seems to kick these guys in and we saw that into the close. We moved back to an obvious buy point even though it seemed there is no reason support should hold and bam you get a bounce.  Its very important right now to trade between these key areas as everyone is eyeballing these levels and they keep holding.    Its a frusterating market for sure but it can be gamed as long as you stick to the system and keep your eye on the key levels.  Whenever you think all hell is going to break loose and there is a breakdown condition yourself to prepare for a bounce as they tend to come when things are getting ugly.

We are still in a high cash environment.  Dont be a hero be like a surgeon just nip and tucking your way. You do it enough your going to have some amazing days with no big drawdowns.