The low yesterday in YMM was 16.310. Today’s high , so far was 16,521. 200 pts on one mini Dow is 1000 bucks. Resistance above looks to be at 16,550 and then 16,600. Today is Wednesday and we’re heading into the long Holiday Weekend.
A 200 pt rally is not that big a deal, in my opinion. Back in 1998 through 2002, we had daily 200 to 300 pt trading ranges, and we traded the whole range, sometimes twice during a 7 hour trading day.
This is one reason I get so circumspect at commentators and analysts who have no historical basis for their bi-polar reactions to our current day market movements.
The best thing about a Stock Index market that is moving is that it gives you multiple chances during the day, and therefore, times 20 , in an average month which has 20 business days.
My point is, if you are a speculator, you should embrace the 200 pt and 300 pt wide trading days.
If you are disciplined and not afraid to flip your positions, you have great opportunities to make money.
So many traders, analysts, pundits, etc would rather be “right” than make money. You have to be mentally flexible and mentally strong to be a professional traders. Individuals with a strong desire to be right and prove an opinion, ie PHD’s or other’s with initials after their names are often swept away while trading because they are driven by a deep seated desire to trade stocks and commodities the same way they behaved when trying to “Ace” a test.
Its nice to be right, but its even more nice to make $. If you read my blog, that’s my main goal. identify good low risk trades both fundamentally and technically, put the trades in place and let the market stop me out. Multiple stops with small losses are acceptable because we are looking to catch that one nice trending market. In a lot of ways, trading stocks and commodities is like surfing. You can’t surf well if you are constantly challenging the waves. You have to work with the market, work with the ocean, in order to be profitable longer term. Below is the 3-month/ 700 pt trading range that has hemmed in the Dow. When we break-out above or below, you’ll see the headlines int the papers. However, we could trade this range for quite some time, especially since we are heading into the thinly traded summer months.
