What a crazy week it has been! The whipsaw action was great for the short term trader..if you were on the right side of the market. I don't want to sound perma-bullish here or make it sound like this was all expected...But lets rewind a bit.

Friday September 19th the day after the Scottish Independence vote I looked for a gap up and sell off to follow marketing a medium term top in the markets. This was  a perfect example of multiple indicators playing out at the same time. The icing on the cake was the Lane divergence in the S&P. and the upper channel line of a 1-23 pattern. It was a perfect set up.

Now at this point we can see the daily stochastics have really rolled over and gave us that LD (lane Divergence) so we started focusing on the 60 min time frame as we know we can see multiple rotation from over bought to oversold as the daily continues to trend down. This enable us to really trade the markets using some specialized ETF's and the VXX. We did well. 

Now this weeks video really goes into detail into the different scenarios that could play out tomorrow. I have a trading plan that I want to stick to based on additional market weakness and a move down to some very important levels. The video also outlines 3 fantastic flags that are holding up excellent in these markets and I will look to get out of some losers and if the opportunity arises I would like to take at least 2 if not all 3 positions. This really comes down to what tomorrow looks like and if we see a fast move down or a gap down.. but again this is detailed in the watch list video 

The Video also goes into a few extra areas..one is I go over my core HPS watch list. These are the core stocks that I try to trade. They represent a nice cross section of quality names that if you develop patience and what for the HPS zones to play out will give you great returns. this segment is kinda long and just is a description of each stock and its current outlook.. I do a recap at 55:40 into the video if you want to jump past it and get to the best bets for the week. But he beginning of the video has a lot of detail on the trade strategy for tomorrow. 

This weeks Video can be found here.

As I review the watch list I make a point of discussing my situation and timing of the energy sector. I held on to some basic material stocks based on more of the overall market pattern playing out into a larger flag pattern and not really pay attention to the effect of the strong dollar and the overall bearish tone underlying these stocks. Now I am pushed up against a wall where I want to see the market perform as detailed in the video but know we have some weakness ahead before that.. I am considering cutting my losses in these stocks and taking advantage of the best bets that are lining up. Some of these stocks are very good names and have paid me a dividend and even though I feel we are close to a bounce I will feel much better untethered from these. 

Update on the markets right now

es futures down 3.75 but up 7 points off the lows

See you early tomorrow Morning

DayTraderRockStar