From the Trading Desk

Total Eclipse and Light Volume, Tight Trading to begin the Trading Week

Monday’s session witnessed lighter volume across the board. The Dow and S&P 500 could battle for gains after morning selling. VIX was slammed as the market traded higher and in a relatively tight trading band for the day. Fear is not something we are seeing from this market right now. Crude Oil fell back to a $47 handle, but has remained near $50 suggesting we may see the commodity trade above $50 in some time. Small caps continue to remain weak as investors continue to ignore the entire group. Trading on Monday was not all that bad and yielded a bunch of new longs for our subscribers. A good sign if we are to move higher from here. We will have our stops in place in the event this does not hold, but we are not about to miss a chance at gains. The entire market remains near oversold levels and even without a ton of volume there is a good chance we see a rally from these levels. Keep an open mind and as always keep your losses in check.

Seeing so many new longs is a positive for this market. We are machines and do not use emotion to make decisions. Discipline takes time, but it pays off in the long run. We certainly make no bones about it, we could very well be wrong here. However, given the opportunity to miss gains versus tiny losses we will take tiny losses all day long rather than miss out on potential HUGE gains. Other than sustaining large losses missing out on big gains is our next biggest pet peeve. Do not miss out on gains. If you are not a subscriber why are you waiting? BWT has existed since 2005 and we are not standing here today due to blind luck. Get aboard do not wait. Remember, our number one rule is to keep losses small. There is no second guessing with our exits. Come join BWT and follow along.

It is hard to believe Summer is almost over. It won’t be long before we resume normal trading activity and it will be very interesting to see how this market reacts when most are back from vacation. Monday night the market received news we have a different strategy in Afghanistan. Futures popped on the press conference of the United States ramping up in Afghanistan. As the strategy takes shape and is implemented it will be interesting to see how the market reacts to another effort to finally “win.” At the end of the day regardless of your political leanings we worry about how price moves. Remove the bias one way or another and focus on position sizing and exit strategy. Risk management is paramount in the trading game. Without it you will ultimately end up with huge losses. Cut your losses quickly and move on.

We hope you have a great week of trading. Not much left of summer, so get out and enjoy it!

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