Every freely-traded market makes a series of turning points during the day session of the regional stock market.  You don’t need to master complex cycle theories or pay to join some elite trading group in order to utilize daily turning points. I can teach you how to spot them with conventional technical analysis.

Scoreboard

ES:  6 wins / 0 losses

Chart Chat and Mentoring Moment

Today is the predicted day for my long-awaited daily HI.  It looks like it may finally be in and right on time.  Today’s Chart #2 is a 60-minute chart.  Its green dashed MA is 34-bars, the approximate equivalent of the green-dashed 610-bar MA on the 3-minute chart (Chart #1).  The blue dashed vertical line you see at October 12th on the 60-minute chart marks the last full moon.  During each 28-day lunar cycle the daily time frame averages three HI/LO turning points.  The next full moon will be November 10th.  So, if today marks the first HI turning point during this current lunar cycle, there is a good probability that there will be a LO and another HI between now and the next full moon.  Does this sound like some bizarre New Age astrology?  It isn’t.  But, many people jump to that conclusion when they hear references to celestial phenomena.  All I can tell you is that I don’t believe in astrology but I do believe that these turning points are absolutely real and predicatable – at least to a point.  A predicted turning point is really fundamental info because it is telling us what the market should be doing.  I don’t trade until my technical tools confirm that fundamental prediction because technical analysis shows what the market actually is doing.  Fundamentals are only trustworthy when they are confirmed by technicals.

Today’s pattern was totally bearish and unidirectional with a single LO turning point.  Very unusual, but not completely without precedent.  Have a great evening.  Be back tomorrow.

Please click on the charts below to make them larger.

Chart #1

Chart #2