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Bad News?

When bad news no longer causes the markets to sell off, this typically means that their is strength and usually means we will trade higher. The sentiment of the markets has changed drastically over the last 4 weeks. We have opened lower on quite a few mornings yet, the market trends higher throughout the day. The finacials which were responsible for the market carnage have been leading the way.  It is during these times that you must put your opinions aside and can not justify that we have come to far to the upside and we must sell off. Following the intra-day order flow is how you generate large trading profits, not be doubting what is occuring in front of  you. Don’t get me wrong, It is truly hard to believe that sentiment has not only changed, but there not many tradeable pullbacks to get long. Stocks are exploding to upside with little or no pullback.  As earning season gets underway, it will be interesting to see how the market reacts to news that just can”t be all that good.  Remember, if we do not sell off on bad news, more than likely we will trade higher. We are looking at the next resistance in the Dow at about 8300.

Don’t fight the tape. Pay attention to the Order flow!



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