Yeeeeee-Haaaaaaa!!!

10:30am EDT: Fortunately I remembered to wear my cup and my mouth guard today:

The market continues on its quest to shake out any weak hands. Thus far I have remained in the sattle:

If my current count is correct we should have completed Minute {ii} of Minor A early this morning and after the obligatory mid afternoon whipsaw our path should continue to the downside. Of course more complex scenarios are always possible but as long as we do not exceed yesterday’s 913.84 high there is no cause to change our wave count or adjust our positions.

10:47am EDT: This is for you channel surfers:

Hang loose, duuuuude!

BTW, we are creeping up for an attempt to retest those VWAPs which is ~ 894 on the ES and 1403 on the NQ. ES is painting a little rising wedge IMNSHO.

Breadth Readings: NDX 2.4:1 declining issues – SPX 1.55:1 declining issues. Strangely the NDX is weaker than the SPX today – the intra-market divergence has flipped since yesterday. Doesn’t look healthy and thus confirms the notion of further downside.

11:07am EDT: I know how many of you feel right now – there’s this ‘sunken feeling’ when the tape is completely driving you crazy and you just watched perfectly good profits turn into losses. You start thinking ‘I should have done this – I could have done this’ – etc.. Listen folks – the market makers are going to do their best to shake out the bears – remember that we are inside a bear market rally. Your benchmark should be yesterday’s high – if that is breached I will exit my positions. Until that happens I’m staying put – literally.

12:00pm EDT: Alright, I’m really sick of watching this tape – doing so only tempts one to do something stupid – LOL. I’m going to grab breakfast and then check back.

FYI – Geronimo just scalped another one – I was very hesitant about taking the trade but this damn think is on fire. While I’m on the topic: I just had a chance to catch up with Eric (the guy I’m working with on this one) and we both agreed on making Geronimo available to all existing evil.rat subscribers for a week or so – for free of course. Maybe next Monday would be a good day to start the trial. If you meet the capital requirements I outlined shoot me an email if you have any questions.

1:04pm EDT: Oh – for fuck’s sake. I’m really not going to comment much for the remainder of the day. Complete whipsaw and I knew last night that the odds for today would be horrible. Swing trader’s wet dream – so if you are one of those – go know yourself out. I for one will ignore all this crap and wait for a breach either below or above. Anything in between is merely a complete waste of my time.

It is important for traders to know when to not watch the market. I am not suggesting you stick your head in the sand and hope for the best. But once you have taken a side you should know where your exit and your target is. During days like today it’s easy to get frustrated and wanting to get out of the market – or perhaps try your luck at playing the swings, even if you have only limited experience doing that. I would strongly caution you from doing that. Instead – just walk away and sit it out. Wait for your line in the sand to be breached. Because if you don’t – you will expose yourself to a lot of needless stress and frustration, which might affect your trading decisions in the future. Trust me – the market is a cruel mistress – and she knows how to wear you down and weaken your resolve. Again, I’m not talking about being stubborn – as a good trader you know your entry and exit points. Everything in between does not matter and is merely noise.

1:16pm EDT: Geronimo just completed its 2nd successful scalp for the day – 2 for 2 🙂