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Consumer Confidence Drops$
After 2 months of improvement, consumer confidence index fell to 49.3 in June. In may the index stood at 54.8. Todays results were worse than expected. Prior to the number being released the market had an upward bias, but quickly retreated once the number came out. The SPY went from $92.90 to $91.92 within 30 minutes. Light volume and sideway action ruled for most of the day until there was a surge in the last hour , only to be sold into as the closing bell rang and the2nd quarter ended. Ending what was the the largest percentage gain in one quarter in a decade.
However, with that being said, it still seems as though the market wants to digest these gains some more and possibly dip a bit further. The SPY closed today at $91.95 ,which is right above the daily 20MA at 91.88. Holding these levels will be crucial to where the market trades from here. Remember that this is a holiday shortened week and the volume should decrease as the week progresses so we may not see any real significant moves until next week.
In the meantime, remain disciplined and always follow your plan!
Today’s Action
Today was one of those days where you needed to make a few bucks within the first 45 minutes or so and then sit back and watch as one of the biggest financial criminals of all time was sentenced to the Maximum of 150 years behind bars. Justice was served!
Hopefully this message sent a strong statement to the American people that those who are greedy and want to cut corners to be successful will pay the ultimate price. Hopefully we can start the rebuilding process and more importantly we can begin to trust Wall Street again. Confident people will create confident markets, ultimately leading the markets higher. To see Dow 10000, once again would be the least that we can ask for.
Again trading today, was more of a lesson what is right and what is wrong! The market itself did not feel as strong as the numbers may have indicated, but you can only expect that the market would feel good on a day like this!
Have a nice life Bernie!
day trading lessons
To day trade consistently profitable requires you learn the skill of determining if you have an OBVIOUS edge. Every day is not a day for full share size nor should you expect max profits every day.
Too many traders spend a lot of time (too much in my opinion) looking for a spot to enter a new trade. You should spend most of your time determining if you have a reason to enter. Don’t confuse momentum with order flow. If the edge is weak no reason to commit capital.
FOMC Yawn
The 2:15pm announcement came as no surprise today as most wall street traders and the like expected the FOMC to keep rates unchanged. The FOMC said interest rates would remain low for an extended period. They also said that inflation is likely to remain subdued for some time and noted that the pace of the economic contraction has slowed. The vote to hold its target range unchanged at 0.00-0.25% was unanimous.
As day traders our job is to not try to interpret what is being said but rather to adjust are trading decisions based on order flow and momentum. Typically when the FOMC meetings occur we get some wild gyrations within the first 30 minutes after the announcement. In these early minutes, most technicals are out the window. A time when new traders or trainees should be on the sidelines watching and observing. An experienced trader can many times fade these moves until the market settles in and picks a direction.
Today’s announcement was pretty much a yawn. The markets had a hard time moving at all. The $SPX at 2:15 was trading at 903.25 and closed at 900.94. The market saw a bit of selling pressure but was met with some buying as the bulls try hard to keep the Dow above 8300 closing at 8299 and the $SPX above 900, both psychological levels.
Tomorrows trading can prove critical if we break below 889 on the SPX which is its 20MA on the Weekly chart. Our traders will be watching that level and will continue to trade what they see and not what their opinion is!
http://www.keystonetradinggroup.com
212-594-8900
get involved to earn money day trading$
Day trading believe it or not requires patience. The most difficult thing to do in this instant gratification world is nothing. Can you wait for an edge to be obvious or do you get involved because you have an account. In my experience most unprofitable traders or inconsistent traders choose the second one.
If you want to earn enough money to pay your bills you must get involved when there is an edge and simply manage risk. When you get a head start on a trade build a position. Have the patience to let it play out, bigger profits take time to grow.
It takes a skill to learn when to get involved and when to sit on the sidelines. Get some screen time and learn the difference.
Keystone Trading Group 
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