NQ's 'W' Trade Setup

The market drops hard in the open today only to make a reversal a couple of hours thereafter. It made a 'w' pattern that shows a double support as shown from the 5-min chart below. Timing the reversal and riding the sloping ema's upwards is the best opportunity to make a trade in today's market.

So What Now With The Market

Nothing, do nothing, if you don't know what's going on with the market do nothing, as what Jim Rogers professed. The broad indices are topping out, including the Crude, and the Gold is struggling too. So what now in the market for traders, either take a break, watch the market price action, learn, go over with the mistakes, find something to do, or hibernate for a while. The market seems exhausted from this observer's point of view. It's time to make a break for the market participants, month of August and September in the market is a bit slow. Most participants are going on a holiday/vacation. The charts below shows how the market is up to.

 

 

Crude Wrong Setup

This refers to my earlier post regarding 'Crude Bullish Cup?'. Was wrong with my observation and got stopped at 106 as shown below. That's how the market is, it's all about probabilities, we cannot predict the market movement. All we have to do is admit we are wrong and  move on. Wait for the next trade or look for other opportunities, or might as well reverse the trade. That's how to be in the market, ready to change/adapt. In this chart, the bullish cup with a handle pattern failed.

Crude Bullish Cup?

Shown in here is the 5-hour chart from the Crude (WTI) which is forming a bullish cup with a handle pattern from the technical view of this observer. The handle is forming due to its double support from the 106 range level. While the cup was firmly/flatly supported at 103 range level. I guess it is time to put a long position at the current level with stop at the support, 106.

Monday's 'Autistic' Market

Today's market was confusing and sorry for that title word, no offense please, it's just for 'figure of speech' describing today's market environment. As everybody knows who are in the market, it moves more than that. Anyway, today's market is for the quants or the HFT's, not for the discretionary traders. Just look at the charts below, isn't these charts are all confused?

 

 

Market's Random Thoughts

It's a weekend and was summarizing the market activities the past week or so, and considering the news and the Calendar events that was scheduled, the market still made an uptrend move. Unless you are a short term participants as compared with the long 'termers', you will experienced a nerve wracking emotional pulse because of the market's up and down swing. Well, that's how the market is, if the market doesn't move in a pulsating manner, there is no market at all, the market is like a human being.

The market is topping up, it might consolidate or will move sideways within the coming days or possibly weeks. Profiteers are readying their wide basket to catch any (abrupt) potential drop of green bucks anytime. Let's get ready to 'rumble' (or ruckus) as the famous Michael Buffer always voiced out.

Anyway, better for the short term participants to make a break in the coming days or possibly weeks. Time to reflect something outside our comfort zone once in a while and have something enjoy a quiet environment.

Been a while studying/observing the market in our humble ways and it's important to have some break once in a while and think/do something different. Get some exercise possibly, do some painting, read some motivational books or whatever that can inspire us in our lives will do good. Set some goals, have more dreams, as they said, 'if you feel that your life is closer to average than you desire, you need to do more dreaming'.

From Malcom Gladwell's book Outliers, to master a craft in any field, one needs around 10,000 hours of practice in order to become used to it or become successful. That's a lot of hard work, and that's what we've been trying to practice in the market, we need continuous learning in the market. When dealing with the market, one need to be adaptable, because the market is an ever changing environment.

But we need to be balanced, not only in our life but in any of our endeavor. Also we need to continue in our learning and to continue to prepare, because when there is a chance or opportunity, we are ready to grab it. That we can apply in the market, we need to be always ready and timing is important in the market.

Vertical Leap From Gold

Quite messy in the market today especially in the regular session and also a choppy move in the Globex market earlier. Likewise the indices (S&P, Nasdaq, and the Dow), the Crude is on the profit taking mode (partly because it's Friday, most participants will enjoy their loot in the bar?), while the Gold partly recovered when it made a very heavy leap as shown below. Gold made a Darvas 'box' consolidation below the support (S3, from real platform) until it burst like a rocket powered by a high octane fuel. Have a nice weekend fellow traders, enjoy your $!