Morning folks. Looks like after yesterdays reversal we are set to open sharply lower again. It seems that the “hammer” candle that everyone ws looking at yesterday has been negated. Right now we have all been trained for so long to look for weakness to load up on positions this type of tape has been throwing us curveball after curveball. As ive said before this is the type of market you want to be in if you cant move quickly and you dont have money to lose. Just chill as even the most seasoned of traders are getting smacked around. Right now I think really the best thing wallstreet/traders are hoping for is just a horrific jobs number at least then the qe3 rumors can start and we might find some suport in the market. We are in a strictly daytrading environment. It seems that if your trading from the longside buying on strength or chasing strength tends to get you faded and its better to be early and sell any strength so ill be making slight adjustments to my daytrading style….keep that in mind today.
For today I will be using yesterdays low in the s&p as my first level of support spx 1235. that will be the key level where you could see a lot of selling.
not much else out there. volatility is back in big way. stay light. right now im trading in 1/2 position sizes to mitigate any losses that might be taken. its looking like holding anything overngiht is too risky so im going to be keeping daytrades..ill probably be stopped out of my positions i added yesterday.