Market’s Swift Recovery

The Nasdaq Futures held the 7000 mark again.  It has been bouncing of that area for a number of days now.  I was surprised by the ferocity of the sell-off on Tuesday.  The market was set to close at 1pm EST and it sold-off right into it.  While I wasn’t expecting it, that support area held again and looks to me like that will be the last time we visit it for a while.  My expectation is a move higher again from here, with tomorrow being key.  The Nasdaq Futures have to take out the 7150 point to solidify my interpretation, and it closed at 7125.75, so not too far away.

This latest trade like any other requires patience.  In the game of swing trading, where you are in for bigger wins in terms of multi-day/multi-week trends, you must have patience.  Recently at the course I held in June I talked about the phenomenon of almost always being in the red of the first day I enter a trade.  It’s almost universal, yet the ultimate outcome is always unknown….back to patience…

Bottom line, trading is not easy, never will be and even thought this latest trade is now back in the black and making money, the important thing for me to remember is that this is a game of math.  I know there will be losses, but I know also that MOST of the time there will be gains, and the gains will be on average 3x the size of any losses, those are pretty good odds in the long run…even the short run.

So bring on the bulls!

John