Two Days In Every Week You Shouldn’t Worry About
Stock
index futures opened Tuesday’s session with downside gaps after some
earnings warnings from Corporate America and yet another surge in crude prices.Â
The futures were heavy for the first 30 minutes, until news at 10:00 that the
services sector had grown at a slower pace in September was good enough for a
thrust to new session lows, but the selling quickly dried up. The session
turned into a textbook “backing and filling day” as the test of the upper end of
the failed to find any follow-through buyers.
The
December SP 500 futures closed out Tuesday’s session with a gain of +1.00 point,
while the Dow futures suffered a loss of -29 points. Open interest continued to
expand in Monday’s session, but the contention that it was new money could be
argued against due to the late reversal. Looking at the daily chart, the ES
confirmed Monday’s evening shooting star, but bounced off of Monday’s gap
support, to post a doji. The YM posted a market structure high off of its
20-day MA and bounced off of its 38% Fib retracement of last week’s low to
Monday’s high. In the small-caps, the ER2 posted an inside market structure high
and continues to show the best relative strength.
               
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December
bonds found a little bit of follow-through off of Monday’s hammer at support,
but gave up the lion’s share of the gains to post a doji. The SOX posted a
market structure high after finding support off of Monday’s gap.
Wednesday
is free from economic reports, so, for a lack of any other catalysts, the
equities markets may be at the whim of the weekly oil supply numbers at 10:30
ET.
I found
this passage originally a few years ago, and found it again yesterday in one of
my old notebooks…..
Yesterday, Today, and Tomorrow
There are two days in every week about which we
should not worry. These two days should be kept from fear and apprehension. One
of these days is yesterday, with its mistakes and cures, its faults and
blunders, its aches and pains. Yesterday has passed forever beyond our control.
All the money in the world cannot bring back yesterday. We cannot undo a single
act we performed. We cannot erase a single word we said. Yesterday is gone
beyond recall.
The other day we should not worry about is
tomorrow, with its possible adversities, its burdens, its large promise, and
perhaps its poor performance. Tomorrow is also beyond our immediate control.
Tomorrow’s sun will rise, either in splendor or behind a mask of clouds, but it
will rise. Until it does, we have no stake in tomorrow, for it is as yet unborn.
This leaves only one day – today. Anyone
can fight the battles of just one day. It is only when you and I add the burden
of those two awful eternities, yesterday and tomorrow, that we break down. It is
not the experience of today that drives us mad. It is the remorse or bitterness
for something which happened yesterday or the dread of what tomorrow may bring.
So, let us do our best to live but one trade at a time.
 
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Program Trading Levels
Fair Value – 0.40Â
Buy Program Premium – 1.46
Sell Program Discount – (0.57)
Closing Premium – 1.92
Closing Bias – If the futures gap down at the
open, watch for a retracement up towards the gap fill.
Please feel free to email me with any questions
you might have, and have a great trading week!
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