No breakout today -- A pullback in play

The weekly chart (which I didn't bother to check) gave us a clear sell signal LAST WEEK. We are due for a pullback at least to the weekly advancing trendline.


The monthly chart has us going higher. So my prediction of slicing through the 50% level of 1128 was premature.

The Spring Tightens.... Again

The 10,000 tick chart above gives us a cut and dry illustration of just how simple this method is to trade. The set-ups are clear. They take anywhere from 10 minutes to an hour to take shape so you're not surprised by a change in direction. Both entries and exits give adequate warning to execute. The hardest part is paying attention. Pull the trigger and take your profit.

The 12,000 tick charts above showed us the sideways price action today and we're positioned for a move back up.Today the spring got wound for the pop tomorrow.

Which way do you think it's going to break?

It Goes Both Ways

We've had several days with lots of "HMH" (Higher Means Higher) signals in the FRO. If you don't know what that means go back a few days down below to discover it.

So now we're seeing "LML" (Lower Means Lower) signals that have accurately forecasted lower price action.

Friday started with the Daily Chart giving us a clear sell signal. And the other charts confirmed that trend change after hitting new 12 month highs for the second time this week.

As you observe the charts above you'll see it all playing out.

The Rest of the Story...

Yesterday Oct 13 we witnessed the almost uncanny ability of the Futures Risk Oscillator (FRO) to forecast future price activity by hours and even days of advanced notice.

Well today was no different. We had HMH (Higher Means Higher) peaks in the FRO that told us at 7AM ET that prices would exceed the high of 1085 half.

Let me repeat that for you...We had notice at 7AM that price would blow through 1085 half!

The 12,000 tick and the 8,000 tick charts here illustrate the action of the last three days.

Question: How did the FRO 'know' what the FOMC meeting minutes would do to price action? Hmmm.....

Nobody Knows What I Know....Really!

Today was a great example of the ability to foresee what the market would do even though the trading seemed tentative and edgy with light volume and no apparent direction.

The market is always doing something... ALWAYS.

On of the most fascinating things the Futures Risk Oscillator does is to forecast future price action and breaks. And it does this hours, even days, in advance.

On today's chart we had two "HMH" (Higher Means Higher) peaks in the FRO. The first HMH appeared at 5AM yesterday (Monday 10/12) and the second was at 12 Noon today.

The 5AM high was about 1076.50 and the 12 noon high was 1072 even.

After today's close price popped up to 1081.50.

And we knew it would go above 1076.50.

Did you?

Classic Syndicate Trader Action

Today we had a positive FOMC report yet the price action had nothing to do with the report. It was more of an excuse to lure the herd into long positions with an uptrend until the FOMC minutes were released. When the report came out the market took off and broke through new one year highs only to get slammed down 20 points in 90 minutes to the 7 day support level.

Its days like this that the FRO proves it's ability to track deliberate market manipulation. It was about drawing traders in long followed by heavy selling to trigger panic selling. The FRO is a "forensic trading" tool. It identifies and protects you from these manipulators.

You can see clear, cross confirmed sell signals at the top pivot where the "crime" was committed.

You really want to know how amazing the FRO is? Look at the "LML" notations along the dips on the FRO. That was your warning that price would go lower than the price level noted. And in spite of that rocket launch on FOMC release, price did go much lower than that morning low right into the close.

AMAZING!

P.s. I had to mark the spot where I took a wrong way trade. I looked at the more sensitive charts and lost my way momentarily with a one-tick lucky profit. My bad.

Warning!

You can lose money -- alot of money -- trading.

All Distraction Is Self-Distraction

Friday 9/18 was a range bound day.
My first inclination on a range bound day is to wait and watch for a breakout.

Friday it never happened so I waited and I spent 8 hours watching with zero results. Not good when I have a month's end goal of $58 million. Now that goal gets pushed out to Friday 10/2.

The FRO signaled 8 good trades but I distracted myself with things like focusing my attention on the 800 tick chart. The 800 had so many false alarms that I gradually lost faith in it.
Meanwhile the rest of the 'team', the 8000, 4000, 3000, 2400 and the 1597 tick charts were all quietly trying to get my attention to take 30 points worth of good trades.

Classic mistake.
Why?

I was afraid to make a mistake so I cranked-up the 'microscope' and zoomed in so tight with the 800 tick sensitivity, that I lost sight of the bigger (far more relaxed) picture.

There is not an external distraction around that can stop me from profiting like my own fear driven, self-distractions.

Look at the charts and the cross-confirmations below and you'll see all the classic buy/sell signals begging to provide a 'payday'!