Smack Down!!

Well if today wasn’t a “reversal of fortunes” I’m not sure what is. One thing I try to share every morning with you is the S+P Support levels… That is crucial information not only for day traders but for swing investors too. The levels we gave here at investingwithfaith.com this morning didn’t hold. And with that we exited and took our gains quickly before they could of turned into losses.

In the early 2000’s I would study and contact institutional investors from all over the country. I would read everything I could on their work. Many would talk about “Back in their day” they made their own charts by hand every day, these were traders that didn’t know each other, from different areas of the country. What they did was write down the opening price of each day, then the closing price of what ever they were trading. Floor Traders refer to the numbers from those levels as “Pivot Points”.

Well I started doing the same, then transferred them to graph paper like they did, and eventually my eye would see areas of Support and Resistance that many others didn’t. In the long run, heck maybe even a week from now, “who knows”? We might see that today was nothing but a blip on the radar.

Here’s the challenge…. The Bulls needed to gain control above the 5,600 level as we have been talking about for a week now…. Today they lost it, today they not only lost it but did so in “Smack Down” fashion. Out of all of the stocks that we focus on here there is only one that is still a true contender. It may be down but this one is not out, and it’s SFM…. It’s sitting smack dab on it’s 20 day EMA as we speak unless it goes south here it’s still one for consideration.

This chart that I’m adding is a actual chart that I use during the day.. Every green bar that you see represents a 2 hour time frame. That yellow horizontal line down below? That’s the “Price Magnet” that is where price is trying to go to. Anything below that and it is absolutely “gloves off” Are you seeing a theme here? We play defense. We can’t stay in the game if we lose our line.

That is why trade management never goes out of style.

What’s our favorite saying here? “Strength typically builds more strength and weakness typically creates more weakness”

J-Pow speaks tomorrow. No doubt at this point it could be “sink or swim” Let’s hope it’s the latter, no one wants another “Smack Down” Tomorrow is another day….

Invest wisely, live charitably and be well

Brother Bill