Here’s One Way To Read The Market
Sometimes when my little voice tells me
that we’re in for a rough one, I’ll give myself a little bit of extra
confirmation. This might be an extra .05 above pattern highs before I decide
that the trade is worthwhile. I guess you could call it, “prove it to me” mode,
and this tends to keep you out of trouble when things aren’t really “smoking.”
In Altria
(
MO |
Quote |
Chart |
News |
PowerRating), cough, cough, I decided
to use this rule for trade entry based on my interpretation of the overall
market that day. With CNBC playing up the bearish candlestick pattern in the
market indices this morning, I took it as a personal cue that we could be in for
a difficult day of trading on Tuesday. With their resident chartist telling us
about the bearish implications of yesterday, I felt here was an opportunity for
Mr. Market to flex his muscle by making it tough as nails to maintain any shorts
that might have been taken in yesterday’s trade, off of such familiar reversal
setups as the 1,2,3,
at session highs. But I will give them some credit. I was already thinking that
the market had made a possible short-term top into daily resistance, on way too
much enthusiasm by the Johnny Come Lately crowd. Put the two together, and I
was ready for a churner, which I expressed early on in TMs
Chat room.
On day’s where I interpret the market as having
that “crowd %$#$” attached to it, it’s time to stay away from the
‘churn and burn’. The best way that I can do this is by setting my entry points
either a little bit higher for breakouts, or a little bit lower for breakdowns.
If those levels get triggered, then I know that it’s time to drop the opinion,
and get back in gear, because the “MO”mentum is back.
10:16:43
Intraday
Setup Alert
From the Nightly Daytraders
Report, Altria (MO)
is forming a High level Slim
Jim on both the daily and extended intraday time frames. Triggers out of
this consolidation pattern are above pattern and price resistance at 42.52
(Highs +.05). MO is currently trading up .18 at 42.30.
Thank you CNBC for giving me the heads up ahead
of time. Sometimes reading between “their lines,” can save you a whole lot of
heartache and bankroll in the Slim Jimmin’ process .