China's Gold Imports Jump Sixfold

http://www.cnbc.com/id/45198734

Interesting.

The 3 day tight range.

The market produced another positive day today and up auction continue. 

Now we have a relatively tight range to watch, resistance 

( Oct., last swing highs ) to be taken out or support ( Nov. 1st lows ) to be broken. 

Linkedin is a recent IPO that is worth watching.

Follow up on shipping.

Reaching for the stars !

We have a target, first 200dma and then Oct. highs. We have a support around Tuesday's lows. Today's action showed buyers are in control and up auction continues for now.

Attitudes are more important than facts !

According to recognized aeronautical tests, the Bumble Bee cannot fly because of the shape and weight of his body in relation to his total wing area. The Bumble Bee doesn't know this, so he goes ahead and flies anyway.

In trading your attitudes and beliefs are very important. Below are some of my trading believes to help you start thinking about your attitudes and believes.

I believe that the market is discounted mechanism, meaning the information is already priced into the market.
I believe that patterns repeat themselves because crowds behave in the same way, not individuals, but crowds do.
I believe the markets are ether consolidating or trending.
I believe the future is unknown.

The Plan.

I like to plan my trades before I enter them and write the plans on paper with a pen [writing the plans on excel spread sheets on my computer do not evoke the same feelings in me]; this allows me to have the plan in front of me and I can 'follow along' as the trade unfolds. If I get anxious or if I walk out of the game room and come back in and need to refresh my mind, the plan is there in front me: I simply look at the plan and go back to executing the original plan. Plan, if you stick with it, take many of the emotions out of your trading.  

There is nothing more bullish to a market than sold out bulls. There is nothing more bearish than covered bears.

30min.view , potential head & shoulders setup that would be confirmed by breaking this week's lows
                                                                   
                                                                                OR

daily view , we can trade above last week's highs and the 200dma

VIX is up 42% since Friday's close.

That kind of move tends more often than not to produce a bounce in the market.

Watching to see if the market can stabilize itself and then begin to form a base support suggesting that a higher low is being formed.

Time to rest.

Limit losses, ride profits-regardless of all other rules.

This is the simplest, basic and the best rule you can follow. I'm always glad when I execute it efficiently. Do all you can to gain as much when you are right and to lose as little as possible when you are wrong-regardless of all other rules.

Today the market produced a positive price follow through from the breakout.

Trend following idea, not sexy but could be profitable. Today we had a buyable gap-up with defined fail-safe point at 15.67 or 16.10 whatever is better for your risk budget.

Above chart is showing an "all time high" idea from the shipping sector. Note, an idea is not the same as the plan, you need to know your risk point and your potential profit taking point and you need to risk enough to be meaningful to you if you profit but small enough that you can accept the loss if your edge doesn't work this time.

Remember: The market alternates between range expansion and range contraction. 

The information contained herein is for educational purposes only and is not, and should not be construed as an offer to hold, sell or an offer to buy any securities.

Up and down and all around.

Today we had a news that "Europe will be saved" and that helped bulls to take control again. Tomorrow is another day and anything can happen. We can break above Monday's high or we can go below today's low. More news from Europe, more earnings, GDP and jobless claims are all going to add the fuel to the move.
If you are bearish here remember that operation "Twist" or QE3 began on Oct. 4, 2011 and the market has gone up since with no or little pause. I'm going into tomorrow with neutral bias, and try to stay in the moment of opportunity flow, trading my patterns as they develop.

There is a way to play.....

Some of the S&P500 stocks to report earnings this week.

Tomorrow will probably be the biggest day of the week for earnings with Bank of America (BAC) and Goldman Sachs (GS) set to report in the morning and Apple (AAPL) and Intel (INTC) set to report after the close.  Morgan Stanley (MS) and United Technologies (UTX) will report Wednesday morning followed by eBay (EBAY) in the afternoon.  AT&T (T), Philip Morris (PM), Chipotle (CMG), Microsoft (MSFT) and Sandisk (SNDK) will report on Thursday, and General Electric (GE) and McDonald's (MCD) will wrap up the week on Friday.

Trading now.

I continue to position in agreement with the controlling price action, keeping risk in check, trading day by day, and I am prepared for just about anything.

"When you hit a wrong note it's the next note that makes it good or bad." - Miles Davis

Anything is possible.

Hmmm !

Contraction or a narrower range is usually followed by higher volatility move.

Next !

In a usual situation this kind of two day rally would be followed by a consolidation period, but we are in a very different juncture here and what typically works may not be all that helpful. Keep your mind objectively focused in the now moment opportunity flow and remember, price rules over everything else in trading.

Today we had a classic bear market type activity.

Now we need to watch price to find out if the turn around rally was mostly short covering or there is some new buying in it.