Emini SP update Aug 24 2009
The SP’s continue push to new contract highs but also continue to diverge from volume and momentum.
As we’ve discussed, this is a normal situation for August, as these two weeks are generally the lowest volume of the year.
It also further demonstrates how blindly relying on a single concept or pattern without regard to the broader market can lead a trader into some less than desirable trades.
Understanding the nuances of seasonality of the markets is just another way a seasoned professional trader works his craft.
In other words, beware of the low volume August divergence! the market can still climb to higher levels
Our focus at TheTradingZone is on trading education. Learning how to recognize these and other patterns, so YOU can trade them on your own.
If you are looking for a trade calling service, or to blindly follow someone else’s trades, then TTZ is not for you.
If however you crave a deep understanding of what makes markets move, how the trade is guided by institutional versus local (speculative) trading.
If you want to learn how to use Market Profile, to locate market turning points with dead on accuracy, then TTZ can teach you.
Join me and my co-moderators, including our very own 18 year CBOT floor trader, as we guide you through the market:
- Providing ongoing commentary
- Identifying key price levels
- Demonstrating the power of the TTZ methodology
Click here to download and access the Chat room
You will need the Room Lock word to enter
Members: Log into your accounts to access it
Guests: Go Here and register for access
See you in the chat
Greg
Members and guests of TheTradingZone Live Market Commentary Begins at 3 AM EST on the EuroStoxx50, and Continues until 4 PM on the SP 500. Join us in the Chat Room
Category: Market Commentary
