This morning in the chat room, we noted that a new ES high at 1274.50 coincided with a zero-test on the advance/decline index. This alerted us to a potential shorting opportunity. The market then produced a rapid decline of eight points.
One reason many traders struggle is because they attempt to enter trades based on their own whims and ‘hunches’, which are derived from emotional factors rather than rigorous technical analysis. Our recent article emphasized how, even as contrarians, Trading da Numbas (TdN) focuses on following the trend until there are signs of exhaustion, sentiment extremes, […]
One common error many traders make is to fight the trend, thinking that by doing so they are being clever contrarians. This tendency is even more pronounced among those who are learning – but have not yet mastered — the Elliott Wave methodology. A little knowledge can indeed be a dangerous thing for those misapplying […]
Wednesday gave us a massive move upward in the equities indexes – a move that Trading da Numbers (TdN) members were prepared for well in advance. After noting on Tuesday that S&P / ES prices failed to make a lower low, and after seeing a potentially bullish Elliott Wave count based on reactions to our […]
This morning, the S&P opened nearly unchanged from yesterday, and price promptly rose to test the important pivot level of 1114, whereupon it was rejected soundly. It then underwent consolidation through the morning and lunch hour before breaking through the important 1105 level. As with other days, loss of support resulted in acceleration downward. Subsequent […]
This brief article shows how our take on the market’s action during the previous week allowed us to protect subscribers at Trading da Numbas (TdN) from acting on bearish sentiment which proved to be incorrect. On October 1, ES presented a steady downtrend through the day, closing at 1027.25, nearly 22 points below the open. […]