Your Time is Now

Last month we commented on the increased volatility of late, and that January months are seasonally dull whereas real market action generally begins in February. So far, those seasonal tendencies appear to be playing out.

Crude Oil 5 Minute Chart

I’ve said countless times in the past and will repeat myself here for an update: CL trading is in my opinion suitable only for experienced traders who are well capitalized AND have their heads screwed on straight under the pressures of real-time price action. It has become such an all-or-nothing, algo-driven market where movement consists of sideways chop followed by brief spates of program spikes & slams, often abruptly reversed in v-turn whipped fashion.

Yes there is money to be made there, and yet you can lose your assets faster there than any other symbol, too. Great symbol for experienced, skilled veteran traders. Poor choice for anyone else. Please choose wisely for yourself.

S&P 500 5 Minute Chart

Russell 2000 5 Minute Chart

Stock markets got hit with layers of “news” yesterday that shocked them into sobriety. The economy sucks, unemployment is rampant, under-employment (median wage) is an even bigger problem and the emerging markets (aka third-world economies) are a festering disaster waiting to spread. That following last week’s end-month window dressing led to quite the swoon yesterday… biggest one-day drop in several months.

Unfortunately, no one rings a bell ahead of or even during these type of sessions. No one has any idea which one(s) will stop where or keep on going to wherever else on the chart. Of course it’s human desire to try and figure out which days will do what or better yet, what exactly every day will do from bell to bell.

By far and away, the best tool I have ever found for reading big-picture price action is our very own CM RoadMap measurements. The only strong tech-analysis clue I see anywhere on any charts was that price hit the RM #1 and #2 real early, then coiled just below the RM #2 before breaking further and reaching the CM RoadMap #3 values @ 780% marks. Those rarely happen, and only inside strong trend sessions. Obviously this was one of those.

For me it was a solid day of cash collecting from all three symbols. I hope it was a strong day of collecting profits from your chosen markets for you, too. Like we said all thru 2013: this year 2014 holds high potential for increased volatility, volume, daily ranges and big directional moves in all financial markets. This is the year to make your career, or at the very least give it the net-profitable status start.

Here’s to taking other people’s money from out of the markets, and into our collective accounts. That’s how this profession works. Those with great knowledge & learned skills take money from those of lesser knowledge and skills. Please make sure you are properly equipped to be part of the minority former, not the vast majority latter in this endless market process.

For more daily updates from Austin, visit his blog at Coiled Markets.