John said it politely, but let me be more explicit in what we see. You try to denigrade those able ones who can day trade by making yourself right about impossibility of day trading. You try to disparage the fundamentals that are underneath the action of the market because you don't see or don't believe it. You try to make a noise because ... let me guess .. cannot trade with profits. This action is very mechanical and it comes from your mind, which is a computing machine that keeps asking questions for the sake of questions. It is programmed that way. Mind makes an excellent slave and a lousy master. Your choices are : to keep being a slave to your mind and face public ridicule, or shut the f***ker up and try to look for yourself without its help. Only if you are capable of the latter you could survive as a trader and be accepted by this site. Good luck!

a good link, thanks!

Mr. John Coleman, who invented the Weather Channel, represents over 30,000 scientists who cannot get their voices heard on the main stream media, since they hold a viewpoint on Global Warming that runs opposite to the government and media template. The voices of reason are being suppressed.

on the youtube.comin 4 parts

There may be legal obstacles for Matt and Steve to disclose their positions, I think. And doing what they are doing defeats the purpose. However, taking a couple of trades and studying them completely would be very instructive.

To answer your question about positioning for the next day, I believe that keeping Matt's charts from the preceding update -- to get the geometry of patterns -- and 10, 15, 30 and 60 minute charts -- to get the indicators -- would be enough for an educated guess. Learning how to translate the (custom) indicators into trading decisions is the missing link.

Matt, what do consider of this? Thanks in advance!

Matt, You made good comments in your tonight's market update. You rightly stated that many traded without a firm plan and were lost when the market moved against them. There are many possible ways to trade this choppy market as a short-term swing trade (920-30 entry to whatever higher low we may get). I reckon it would be prudent for many on this site -- including myself -- to have a sample clearly defined strategy-plan of how to do it. I suggest you could describe what you did and would do in enough detail to make it instructive. You and Steve a providing us with tid-bits of knowledge on indicators and strategies . I reckon, you could also describe how it all fits together in one trade or a number of sub-trades for the current move down to a higher low. Thanks in advance!

RSI(14) and MACD crosses? Any more of them?

Lucy, If something happens after hours, you could not do much. You did the right thing: get out as soon as you could. I was saying that there were signs of weakness before today, on the chart. Recognizing them is an art, which comes with experience.

I understand. On one hand, you could not have predicted this tanking tonight: it's an act of God, so to speak, which is not found anywhere on the charts. On the other hand, it was not moving up like it should have been _before_ today. The daily chart shows signs of distribution... If this were a gold stock, I'd re-enter it after its price dropped more tomorrow. Because it's a banking stock, I would take my loss and move on. I hope my critical comments help. Good luck!

I would not wait till after hours to exit a trade: one cannot get a market price then. You should have been out of the trade much earlier than today AH. I told you a couple of indicators to watch for warning signs. I know if feels different while under the pressure of mounting losses. You should have asked a question about it on the blog when you were concerned about your losses, and someone objective like myself would have answered you. Also, set a stop before you enter the trade unless you know what you are doing (I tend to move my stops while in a trade hoping for a miracle. About 80% of the time I would lose more this way then with a stop before the trade).

Well, losses happen. Checking an index stock for the group before an entry is another good practice. XLF had reached its target of 200MA by early May and was moving sideways. CNB was a late starter, so it was a potentially risky trade. I would not put too much money into such a trade, because it's a gamble. Any misstep and I would have been out of it.

Honestly I don't have luck with financials myself: I lost more than gained on them.

One more thing. CNB failed its breakout around May 10 from a cup without a handle. The entry point should have been at 2.20 with at most 8% stop loss. But still, the pattern was error-prone because the rise was too steep.

Another valid entry point was at 1.25 from a cup with a handle shape. Selling it after a failed break-out around 2.00 would have been a good trade completion. More of this methodology is on www.investors.com (IBD).

Lucy, I presumed you were long. Your timing of the entry was likely way off, financials should be bought within days on a new rally. it is on the support now but I would not expect it to bounce off here.

Yes, I took a 33% loss on NXG last year. The common thing between these two are they are both cheap stocks. You might be able to recoup some of your losses by shorting CNB later this summer, it looks weak enough to be a short candidate. Good luck!

I would say, "yes, go ahead if you don't mind its going against you for some time". The daily chart shows that its has likely bottomed and volume is drying up. $djr

http://stockcharts.com/h-sc/ui?s=$djr&p=D&yr=0&mn=8&dy=0&id=p39002259743

is close to giving a sell signal on the stochastic's crossing 80 down. The upside is limited to the 200MA. SRS might touch 200MA or it may not. I'd put 70% of the money now and 30 % on the 200MA touch-up. Good luck!

200MA normally cap bear market rallies. It's a good area to short, if one could stand volutility and the market's temporarily goes against one. No ultra shorts at this point, please! Greed ruins portfolios more than it builds them, on average.

One argument against it is seasonality. While sell in May and go away still works, markets normally recover by August and rally in September. While I don't see how markets could go higher from this point -- 200MA normally cap rallies and require 6-8 months of consolidation to go higher -- we could see at double top in late August or early September at the same prices we have now.

Another argument is proximity to the last trough. Bottoms occur at least 3 months apart -- confer that for November and March. One catalyst of both troughs was Christmas spendings, which are out of the picture now for a while.

So your apealing theory does not seem to hold water, IMO.

I concur. Even though stocks are said to be driven by earnings -- which are  reported as 1/4 of what they were last year -- it is the masses that bring their money in. When folks need money -- and they will need it to survive -- they will liquidate their assets. Foreclosures, job losses, the drop of standard of living will take their toll. those are involuntary actions, and they will be taken despite the best assurences to the contrary. We haven't seen forced bankruptcies yet, which happened in 1930s; extreme risk aversion for investing, which normal mark market bottoms.

In short, I would ignore what Americans say and will see what they are up to in the not so distant future. And don't forget that foreigners who hold US dollars, don't keep them in the banks. When they decide to call it quits -- and they will after $US drops enough -- there will be nothing to prop up stock prices.

During the 1930s the only category of stocks that went up were mining stocks

http://www.kitcocasey.com/articles/2771/gold-stocks-in-a-depression/

They went up 4 or 5 times from their 1930 prices. If you understand everything about how depressions work, you should be able to explain how on earth that could have happened.

Chris Laird once said that one could buy a house for 10 ounces of gold then. I am waiting to see this happen again.

That comparison tells me that the rally is a merely illusion produced out of the thin air (er, borrowed funds from Fed). The common inexplicable money on the sidelines was simply borrowed money.

Could you please post the chart or give the index for Stockcharts?

You'll have to own more than $25,000 in your trading account and apply for a margin. If you smell this is rigged, I am on your side.

Folks, notice the modal "will", not "could" or "might". This is not thinkingness, but observingness. I call it when I see it.