Morning View

It wasn’t easy to do the remount after Friday’s rally. Especially considering that the back and forth overly volatile market could have just as easily broken out to new highs hours later. In fact, moments after I did a remount on Monday, I thought it was going to do just that. Overhead resistance prevailed however and once again the market failed at critical levels. I know not what seasonality will bring and wouldn’t know how to quantify such a thing considering the fact that each December the market faces different headwinds and is never made up of the exact same participants, thinking the same thing, trading in the same manner. At this juncture I can only trade what I see which has been a breakdown in a critical level that may or may not transpire into a trending environment.

What I can tell you however is just how calming it is to take a big step back and evaluate the longer term charts. IT has been through this that I have continued to look for rollover potential despite shorter term charts that said otherwise. I have heard horror stories of how these bullish daily charts have trapped longs and taken money from them on a consistent basis. If one would review the longer term charts they would not be so quick to embrace the shorter term setups that have so far failed on multiple occasions.

At this juncture I am in the cat-bird seat and completely content with my small, but meaningful positions. Each are close to their first profit targets and stops have been lowered to ensure a snap does not result in a loss. I am seeing more and more longer term setups that look ripe for entry however I will wait patiently for another bounce that sucks in new longs and fails, resulting in a prudent entry point.