Wow its been too long since I've commented here. Markets this summer have been really flat, choppy and boring so I have been spending time doing other things, such as travelling, camping, and reading up on trading. A book I just finished was "Trading in the Zone" by Mark Douglas. Its a great read to understand the psychology of trading and understanding how your internal beliefs can have an impact on your attitude and decisions. You'd be surprised how your trading will be affected by interalizing some fundamental truths about trading.
Overall, this market right now is range bound as seen with the SPY chart below. We've had a good run in September and we are right up against solid resistance at 113 area. Two doji's have formed, which means a possible reversal may be coming, stochastics is in overbought territory, and gold is rocketing higher (which is inversely related most of the time to where equities are headed). This makes me think we will pullback from this level and head lower. How much lower? Who knows!! But the risk/reward is very favorable here I'd say. Stay tuned!!
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