On the market.

Well, it looks like it is going to challenge yearly resistance. The question is; are we going to break above resistance to new highs across the board and keep on going OR just reverse from here OR we challenge the resistance but don't break out OR we break out of the range but the break out fails. Have a plan for each scenario.

Losing discipline is not a trading problem; it is the common result of a number of trading-related problems.

Here are some common sources of loss of discipline I have learned about through my personal experiences.

10) Distractions and boredom cause a lack of focus

9) Fatigue and mental overload create a loss of concentration

8) Overconfidence follows a string of successes

7) Unwillingness to accept losses, leading to alterations of trade plans after the trade has gone into the red

6) Loss of confidence in one's trading plan/strategy because it has not been adequately tested and battle-tested

5) Personality traits that lead to impulsivity and low frustration tolerance in stressful situations

4) Situational performance pressures, such as trading slumps and increased personal expenses, that change how traders trade (putting P/L ahead of making good trades)

3) Trading positions that are excessive for the account size, created exaggerated P/L swings and emotional reactions

2) Not having a clearly defined trading plan/strategy in the first place

1) Trading a time frame, style, or market that does not match your talents, skills, risk tolerance, and personality

Reading charts.

I view charts from the perspective of people with positions (long or short) in the stock and those looking to get in or out.  What would compel them to act?  What can a big guy or crowd of HFTs do to pile on and get something started?  Who is trapped ? What is a possible surprise ? I'm always looking for that.

There is no one right answer -- but an endless number of right answers -- to most of trading problems.

Remember that money-making, like all business, is about getting the highest return for the lowest cost. If you compare money-making to flying a plane, trading is like flying an inherently unstable aerobatic plane and investing is like flying a relatively stable one. To fly the first you must be at the controls all the time or you’ll crash. To fly the second, you just check out the plane (and the pilots), point to your goal and (eventually) get there.

US Dollar watch.

2011.

In recent years the market has shown a consistent tendency to bounce back from selloffs that occur on the Monday following options expiration. In fact, 16 out of the last 17 occurrences since 2005

SP-500 defending support area.

Where are we going next ? We are going to go ..... with the flow.

Defense is not only the best offense in this business, it is the only offense that works.

There's time to press and then there's time to sit and wait. Sitting and waiting and a lot of patience is required now.

The essence of success and happiness results from actualizing your potential, which requires a constant process of learning and growing, as well as the recognition that making mistakes is an inevitable, even essential, part of life.

Think about it!

It could help you set up your objectives.

Watching.

Right now, the best new action might be no new action. Let things
shake out. There aren't a whole lot of meaningful setups anyway.

Someone said, “Luck is what happens when preparation meets opportunity.”

Success occurs when you have a definite purpose for your life and you take the initiative to follow through with action. You may make mistakes occasionally -- everyone does -- but any action is far better than doing nothing.

So what do we do now?

The market is severely overbought--gaining
nearly 6% in 5 days. It's very dangerous to buy it at this
juncture. Keep stops on open positions and wait
for a break of the range or a pullback to get involved with new positions.

Secret to becoming a winning trader is to make it okay to lose.

Winning is great, sure, but if you are
really going to be a successful trader,
the secret is learning how to lose.
Nobody goes undefeated all the time.
If you can pick up after a crushing
defeat, and go on to win again, you
are going to be successful.

As you consider your own goals, also consider what you are willing to sacrifice for what you expect to receive.

In the arts, medicine, science, or business. Nothing worthwhile ever comes easily. As you consider your own goals, also consider what you are willing to sacrifice for what you expect to receive. You should be prepared to give generously of your time and talents long before expecting a return on your investment. Many “overnight successes” worked in obscurity for many years before they finally achieved their goals.

Opportunity comes often. It knocks as often as you have a trained ear to hear it, an eye trained to see it, a hand trained to grasp it, and a head trained to use it. - Warren Buffet

                     The information contained herein is for educational purposes only.

Today, it looked like low-volume, end of quarter window dressing.

Today we had an upside reversal on good volume.

Today we had an upside reversal on good volume in Nasdaq and Russell. Dow and S&P closed a bit lower with small losses. What is worth noting is that in spite of all doom and gloom around us we had not set a lower low. 200dma is holding for now and the bulls are hoping it won't break. The market likes to surprise and a new trend often emerges when the majority least expect it, so it is worth staying alert and watchful for clues left by leading stocks and major indices.

Watching for clues.

Nice momentum than pullback and sideways consolidation. Today we got a break-out on high volume.

Notice!

IBD reported that follow-through days in June have had a poor record of success. According to IBD, in the past 10 years, June has delivered four follow-through days — 2001, 2006 and two in 2010. Every one of them failed. On May 31, the NASDAQ Composite flashed a follow-through day, but that too failed.

If you decide to trade now, keep positions small and stops tight until we get confirmation that the market has indeed bottomed.

I was looking for a positive follow-through day and this was it.

Today we had a gap higher at the open and went back up to prior swing highs and broke and closed above them. We settled out at the 20 day moving average and the consistent series of lower highs have finally been broken. In sum this is indicative of noteworthy shift in the balance of power. Weather that shift in power is going to stick will be tested tomorrow afternoon with the Fed announcement.