What Will Tomorrow Bring?

Do you ever look at the motion of the market and automatically understand what is going on in the minds of traders? This is market psychology. The more in tune you get with the market, the more skills you will develop to help you read the minds of millions. I trade price pattern breakouts quite a bit, and in my experience the more you watch these patterns form, the easier it is to know what move will be made next. A classic example is the market today. Today's range was very short and occurred equipped with weak volume. Why?

Tomorrow will bring the patiently awaited CPI results. If results are up, confirming the likelihood that the Fed will pause next week, this ought to spark a rally. September is normally a dreaded month for traders, but thus far has proven to be quite profitable. We've seen a wild drop in the price of oil, jobless claims continue to fall, and retail is already starting to heat up. However, tomorrow can change this in an instant, so make sure you are paying attention tomorrow.

Today's hesitation means there is still an unsettling fear of inflation. Declines outpaced advances by a slim margin. Had you seen a big rise or big fall in the averages today, it would have confirmed traders had placed their bets with a more certain conviction on what tomorrow will bring. Truth be told, no "professional" can completely foresee the future. Anything is subject to change. Take all their opinions with a grain of salt, and watch the price movements. This is going to be the closest you are going to get to seeing the future. Remember, the market discounts EVERYTHING.

In follow up news...CTSH hesitated a little today, which still offers a low risk entry on a trend continuation. AAPL stalled, and so did everything else. I need to go prep for a session on credit spreads that kicks off in an hour. I will try to post again later tonight or first thing tomorrow.

Jeff, I like your blog. Well done. Keep going on.


Normally I check your blog at least once a day but I didnt get a chance yesterday as I was really busy in work.

In any event I would like to echo all the previous comments made so far to keep up the good work on this blog.

When I started trading (less than a year ago), I struggled in identifying my trading style (conservative vs agressive). The first time I attended one of your trading rooms I immediatley felt comfortable with your teaching style and your more aggressive approach and my learning curve increased. The trading rooms are great but sometimes I feel are constrained. This blog takes it to another level as you appear to roll your sleeves up and tell us how you really think/analyze a topic. So its not about the trades its your insight/expierience what most people like to hear.


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About me

  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
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