Fellow Traders:

At the start of today’s TRADING ROOM, I knew that the market was in some type of correction, but I just couldn’t get in sync.  Twice, I sold the low and once I bought the high.  It has been quite a while since I lost three trades in one day and two back-to-back.  By about 8:45 a.m. my time, my personal account and the ROOM were both in the hole -$5,000.

In a recent webinar, I talked about how a good working knowledge of Elliott Wave Theory can be highly beneficial when in “Damage Control” mode.  Amen to that, Brother.  In the middle of my third and last losing trade (a long), I suddenly had an epiphany.  I finally saw the most likely EW pattern, and I knew that the market would selloff big time.  I pulled the plug on the loser and went short – but, not with my usual 9-contract, 3-target peeling off strategy.  Instead, I went with a straight swing trade of 9 contracts – no targets and a mental stop at the big parabolic.

By 10:45 a.m. I had +$189 in my personal account and quit while I was ahead.  We kept trading in the ROOM.  As I have often said, the TRADING ROOM is a training ground, and nothing teaches like real-time experience.  When it was time to close the room at 12 noon, I had just entered a short that went on to hit two targets and bring the ROOM’S score to over +$800.  Around 12:24 I took one more long that hit another two targets and brought the day’s total to $1,231.50.  We actually reached our GRAND-A-DAY, GADGET GOAL after being down $5 GRAND!  Every victory is sweet, but the sweetest of all are when you come from behind.

Have a great evening.  See you back in the ROOM on Thursday.

Today’s Charts

Here are today’s screen captures.  They may include my personal chart, the TRADING ROOM demo platform, charts submitted by students and/or my running intraday Elliott Wave count in the S&P Emini.  Please click on a chart to make it larger.