First of course here is this weeks HPS watch list Video for Members

As August finally gets behind us. It almost seems inevitable that the markets will break away from this tight range consolidation we have been going though since mid July. The million dollar question is which direction? 

I don't think the questions is to hard, I look at the markets in both a technical and psychological way. The second is something that really is developed over time and experience in the markets. Not everyone will have this added skill set in there tool box. I still see daily reminders of traders who are so set in there beliefs that they will consider all other opinions null and void. The truth is no one can outright predict what will happen each day in the markets, We can see trends and channels. We can measure momentum and identify technical  (mathematical) areas on the chart, but I cannot predict when the next event that effects the market in a way that will have a reaction like we had in 2000-2003, or 2008-2009 and you could even add 2015-to first part of 2016 as a event driven market pullback. Each one of these events different in their own way. Something that is impossible to predict. So what do we know.

We know there is no Holy Grail of trading and no such thing as 100% perfection. 

We know that even though there is no 100% perfect method there are  techniques that over time have shown a much higher percentage of predicting a move then without using them.

We know that those techniques are the optimum trade opportunities and should not be missed. 

We also know these techniques work across all different time frames, but each time frame has its own exit criteria for profits and stop loss.

We know that even though it is all laid out for you, it is hard for most traders to apply that type of discipline to their own trading. because everyone wants to try to find there own way.

This summer we saw volatility shrink and the market fall into a very slow and sideways grind, the moves are still there but they are a much smaller in rotation making it hard to get a move that was typical a few months back. This needs to be recognized and your trading should be adjusted to meet the smaller range. 

Tighten your trade up, If your used to trading for 1-2 points (4-8 ticks) decrease your profit point to 3- 6 ticks

Getting back to market direction remember predicting major market tops and bottoms is the hardest thing is you can do. But these events do happen and looking back on the monthly chart you can make a great argument that 2015-2016 was our pullback. 

 In this day in age we can actually feel how the world is speeding up. How our lives are taken over by technology and so many ridiculous causes. The companies that are now embedded in our world will be there for a long time and they will continue to lead in new innovation. Take a look at this next chart and tell me if these companies will be bigger in 5 years or smaller? 

This doesn't by any means protect us from a correction or a world wide event that puts world economies in a tail spin. I can't bet on that happening. I have seen the world banks adjust policies over the last 5 years that make these unforeseeable events easier to handle. 

To wrap up, I don't even know if there was a purpose or morale to this post. It all come back to stress the importance of having something work so good and developing your discipline and patience to trade what works the best. When you have an edge and it works over and over again you start to wake up and pay attention.

And of course this is the methodology of the HPS  www.HighProbablitySetups.com (daytradingradio members already receive HPS) which identifies the stocks and futures that are triggered and alerted to you of that edge approaching. Here is the latest HPS snapshot

Each Stock is detailed in the HPS video Watch list and has its own interactive chart with buy trigger, profit zone and stop all alerted to you via email, text, trade alert box or any of the above.

Here is this weeks Best Bet (I am feeling pretty good so I want to share it outside the site membership.

See everyone have a great Labor Day weekend

DayTraderRockStar

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