Day Two of Market Crashing to Support Jan 31

From the negative divergences in an overextended market, a pullback was precisely the expected future.

However, this pullback was faster and more furious than expected, collapsing the market straight to our targets.

Here’s today’s updated Emini (@ES) trading levels for your trades:

Be sure to revisit last week’s updates regarding Market Internal Divergences and an expected pullback.

The logical daily chart target for the S&P 500 was the rising 20 day EMA near 2,270 which I updated yesterday.

The @ES continues to have the following Fibonacci Grid active, placing 2,263 again as the 50% retracement.

Yesterday gave us a sudden boost from this level, only to see price crash back into it today.

Here we are with a “make or break” support pivot in play. Plan and trade the departure from here.

If you’re new to this style of simple level trading, welcome aboard and keep checking back or get more details beyond just the @ES (stock scans, money flow, education) by becoming a member!

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT

Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”


Afraid to Trade.com Blog

U.S. Congress: Focus on Economy NOT Political Obstruction

Economic data released today on the Chicago PMI (Purchasing Manager’s Index) shows how much the U.S. economy is urgently in need of fiscal stimulation. With barely a whimper above the 50 expansion level, the health of its economy is set to drop into contraction territory soon (as it did in 2009 following the depressed signals […]
Slope of Hope

5 Lessons from the Prop Desk

I was grateful to be asked by my friend, JC Parets (@allstarcharts), to present at Chart Summitt 2017.
My mandate? Share 5 lessons from the prop desk.

As always, I love to include anecdotes from traders succeeding on our desk to teach. And I did so again here in this online presentation.

My 5 lessons from the prop desk were:

1) My favorite setup to trade is a Changing Fundamentals Trade.
2) My favorite new setup to teach is a wedge pattern with a Stock In Play.
3) Scalpers, who Read the Tape at an advanced level, can make real money. SWang’s path to High Performing Trader is an example from our desk of how. But perhaps Read more […]
SMB Capital – Trading Education

Idea for pilots: talk about aviation charts in your local school

Folks:

The local second grade teachers were teaching the students about maps and how to use them. I came in and organized a 30-minute class on the challenge of designing maps for pilots. It was divided up into 15 minutes of showing them stuff with a projector and 15 minutes of them looking at sectional, WAC, TAC, helicopter, and IFR en-route charts at their tables.

In case pilot readers want to do something similar in their neighborhood schools, I’m sharing the materials that I used:

  • speaker notes (shows what to talk about)
  • slides (links to the sites required for the 15-minute lecture)
  • handout (to teach kids that one should never give a talk without a handout; Edward Tufte’s rule! if you’re interested I can share this with you on Google Docs; the web version is pretty bad; if only I could get my hands on some of those Google Docs programmers for a few weeks!)

It seemed to be well-received by the students, but I was reminded of how unnatural it is for kids to sit and listen to a lecture. It is strange that we have organized so much of our educational system around something that kids won’t naturally do.

Related:

Philip Greenspun’s Weblog

We almost owned the Dominican Republic

We grabbed Texas, California, and everything in between from the Mexicans? Why not some stuff in the Caribbean? From American Ulysses: A Life of Ulysses S. Grant:

Babcock returned in September and presented his findings to a flummoxed Fish. Babcock left with no diplomatic powers but returned with a draft for annexation. The United States could either purchase Samaná Bay for $ 2 million or annex the totality of Santo Domingo [present-day Dominican Republic] by becoming responsible for its public debt of $ 1.5 million. The protocol also stated that President Grant would use “all his influence” with Congress to accept a treaty. Grant agreed to Babcock’s draft and asked Fish to write up a formal treaty.

See the Wikipedia article on the Annexation of Santo Domingo, which I’d completely forgotten (if indeed I had ever been taught about it). Part of the idea was that former slaves would want to move to this new U.S. territory. As crazy as this may sound today it was apparently seriously considered.

We were also involved with Cuba:

Even as Grant appointed John Motley minister to the Court of St. James to help deal with a long-term relationship across the Atlantic, a crisis in the Caribbean demanded the president’s immediate attention. Only four days after his inauguration, reports trickled in of a clash between four thousand insurgents and fifteen hundred Spanish soldiers on Cuba, the Caribbean’s largest island, situated just ninety miles from the United States.

But starting in the 1850s, Cuban merchants and planters demanded economic and social reforms, climaxing in an October 1868 uprising that proclaimed an independent Cuba. Spain, in a weakened condition both politically and economically, struggled to respond. Americans responded. Instinctively, they supported what they saw as Cuba’s courageous struggle to chart its own destiny. Veterans of the Civil War, both Union and Confederate, proclaimed themselves ready to support Cuban patriots. The New York Tribune and New York Herald sent correspondents to cover the revolution, reporting that more than half a million African slaves still toiled on Cuban plantations five years after the United States had emancipated its slaves. In April 1869, the insurgents adopted a constitution abolishing slavery.

More: read American Ulysses: A Life of Ulysses S. Grant

Philip Greenspun’s Weblog

Crash Goes the Market to Lower Targets Jan 30

From the negative divergences in an overextended market, a pullback was precisely the expected future.

However, this pullback was faster and more furious than expected, collapsing the market straight into a key target.

Here’s today’s updated Emini (@ES) trading levels for your trades:

Be sure to revisit last week’s updates regarding Market Internal Divergences and an expected pullback.

The logical daily chart target for the S&P 500 was the rising 20 day EMA near 2,270.

The @ES continues to have the following Fibonacci Grid active, placing 2,263 as the 50% retracement.

Price achieved BOTH these key targets today after collapsing from all-time highs during a weekend of political agitation and renewed concern – rather than optimism – about the future (however temporary that might last).

Nevertheless, here we are with a “make or break” support pivot in play.  Plan and trade the departure from here.

If you’re new to this style of simple level trading, welcome aboard and keep checking back or get more details beyond just the @ES (stock scans, money flow, education) by becoming a member!

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT

Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”


Afraid to Trade.com Blog