This Tool Will Help You Stay Focused
Stock index futures opened Tuesday’s session opened
with small downside gaps after traces of poisonous powder were found
at the nation’s Capitol building.
After some early weakness, the ES retraced to
consolidate around 5 lines of resistance from 1,134.50 up to 1,135.25, including
the Daily and Weekly Pivots, 13-min resistance, Monday’s close, and the
overnight Globex high, and when that resistance couldn’t be broken after several
attempts, it attracted some good broker selling. That level was finally broken
going into the lunchtime lull, but the ES ended up churning along its new
support in a tight range. An afternoon attempt to break the contract down
failed as price snapped right back up into that resistance area. Cisco Systems
reported its usual penny beat (on a smoke and mirrors basis) before the close to
trigger some “sell the news” in the futures.
The March SP 500 futures closed
Tuesday’s session with a loss of -1.50 points, and finished right at the median
of its daily range. Volume in the ES was estimated at 594,000 contracts, which
was behind Monday’s pace, and below the daily average. Looking at the daily
chart, the contract posted an inside day with another spinning top, and closed
back below its 20-day MA. The right shoulder/bear flag continues to form and a
break of last week’s low of 1,121 would set us up for a test of Fib support and
50-day MA support in the 1,107-1,100 area. On an intraday basis, 60-min,
30-min, and 13-min triangles all bled to the downside, with resistance now on
all 3 time frames at 1,134.50-1,134.75.
Wednesday morning gives us a
couple of economic reports after the open. At 10:00 ET, January ISM Services is
expected to come in at 60.0 while December Factory Orders is expected to report
a 0.2% increase. After hours, CSCO’s conference call was weighing on the
futures and with the weak closing PREM, we may see a continuation of the
market’s “heaviness” on Wednesday.
Record-Keeping and Goals
Good record-keeping is a ritual
and a tool that will help you to stay focused and gain control over areas that
are prone to distractions. It is also the main tool for you to monitor your
performance, and focus on both your strong and your weak areas. Every top
athlete keeps detailed records on their physical performance and progress.
Record-keeping monitors your progress in reaching towards your GOALS. If your
goals aren’t written down, then they’re worthless. Once you write something
down, that’s a firm step towards commitment. Writing down your goals firmly
implants them in your subconscious, and you’re less likely to change them. Have
you written down your goals for this year?
Please feel free to email me with any questions
you might have and have a great trading day tomorrow!