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Well, what a nice day for Bob! Still long four from about 1000.00, once price reached Monday’s highs of about 1008.00, Bob moved his stop up to 1007.00 on four of his five remaining contracts. This was reached for a handsome gain of +$1400 (350 times four). He now has one contract, stop at plus two points for good measure.

Feeling responsible our aggressive trader “Bob” pats himself on the back thinking he is rather pro.

Many keep close watch on the up-to-the-minute news services. In order to prevent getting “blind-sided”, some feel the news is an indispensable aid to their trading. Undoubtedly, knowing pertinent information can lead to greater earnings and minimized losses. Note, the operative word is CAN.

Without a solid framework upon which to trade, however, trading the news can be very costly. After today’s better-than-expected unemployment numbers were released, I thought of the news-dependent traders I just mentioned. Now, let’s take a look at today. As you know, I trade a well defined trade-plan. This means the news often does serve to enhance my results. I urge you to build a solid trading foundation based on a viable plan and harmonious, consistent execution. Help is available.

TODAY WE SAW: An opening gap up as the overnight broke to the upside early in the European day-session (around 6am, EST). At the 923.75 high, selling capped off that rally and support at the 906-911 price was first to be tested. It held and after the majority of the day was sideways, range extension around 3 pm EST has kept buying the trade-du-jour for Monday.

BUY-SIDE OPPORTUNITY:

The lows at 909.75 were well within the support Trading Concepts members were looking to buy off of. The bullish price pattern at or near 11 am, EST gave still another signal to buy in this vicinity. RESULT: +6 tic profit objective was easily traded.

SELL-SIDE OPPORTUNITY:

Today, there were only higher risk sell-side entries. None taken.

LOOKING FORWARD:

If you trade the news, perhaps you were guessing today. After all, the unemployment news was that 539,000 jobs were eliminated. Clearly negative. So, prices should go down, right? No. Not when the bad news is better than expected, as was the case today. I hope you were clear of fighting the upward drift in today’s price activity. If you were and would like to learn how to better react to what the market is doing, contact Trading Concepts or me personally. After today’s late day rally, it looks like seller weakness could persist.

Since many of the stock value’s that comprise the S&P have unduly eroded, I hope the bear is losing interest. I am all for ‘checking bubbles against the boards’ (hockey reference-can you tell I live near Hockeytown?). But, when a little scuffle turns into an unjustified pummeling, I object.

So, hopefully the bears behind today’s weak close are chased off. It seems that will take all the bulls can give. After drifting higher through the day, today’s settlement below yesterday’s close and low raises a question. Just a breather or true weakness? Between profit-seeking and long term shorts re-positioning, another sharp rally may arrive soon. For those of us using what Todd Mitchell teaches, the buying-bell rang loud and clear today! Long entries near 11, noon and 1:30 EST met all profit objectives. Additionally, as the day’s decent became strong, a sell entry near 3pm paid nicely.

In all, four trades. The Trading Concepts members that use even the most conservative profit targets (1.5 points/$75) taught, could have cumulatively earned $300 profit per contract, before commissions.

According to www.bloomberg.com “this week’s FOMC meeting could mark a shift toward more aggressive monetary expansion to fight deflation” of the demand for the Fed’s existing programs. If that is what actually transpires, the result will be a significant reduction of toxic assets currently polluting balance sheets and credit availability worldwide. So, while a bear revival continually threats, the galvanizing of the bulls seems set to be in progress.

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