Responsibility

Let’s talk a little about a traders responsibility.  The last few weeks has without question been challenging for swing traders with all choppy price action and intraday reversals.  I’ve been hearing from a lot of traders lately siting consistent losses and blaming all there woes on the news, market makers and White-house and various other villains.  At the risk of sounding harsh, if a trader is consistently losing money, the fault lies directly on the trader’s shoulders.  The responsibility for success or failure is ours and ours alone.

If your constantly losing money continuing to do the same things over and over and expecting a different result is insanity.  Stop trading and get some help immediately!  Your account is proving to you that there is a problem and its time to fess up and take responsibility.  If you don’t, plan to be one of those poor soles providing liquidity to the market until your money is gone!  Being responsible is never easy, but it’s also the only path to lasting success as a trader.

On the Calendar

An early start on the Wednesday Economic Calendar with the MBA Mortgage Applications report at 7:00 AM.  The potential market-moving Housing Starts report at 8:30 AM which expects an increase to a 1.240 million annualized rate for starts in August and permits rising to 1.3.15 million.  Also at 8:30 AM is the Current Account report.  Closing out the calendar day at 10:30 is the potential market-moving EIA Petroleum Status Report that is not forecast by consensus estimate.

On the Earnings Calendar, we have 12 companies reporting results today.  Most notable before the bell is CPRT and after the close RHT steps up to the plate.

Action Plan

Yesterday was a great day with the Bulls firmly in control and the Dow closing 184 points higher.  The QQQ had a very nice rally but by the end of the day failed to hold above a key resistance level so follow-through bullish price action is extremely important for the index.  The last thing we need is a failure resistance!

Asian markets closed higher overnight, and European markets are flat to modestly higher this morning.  As a result, US futures are currently pointing to a flat to slightly bullish market open.  After such a strong move yesterday a little rest or even some profit-taking is not out of the question.  The DIA and SPY are in a good position for a little rest or even a minor pullback, but keep a close eye on the QQQ and IWM because if they give up very much ground, the bears might sense weakness and attack.  So let’s go bulls!

Trade Wisely,

Doug