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ISM non manufacturing came out today worse then expected. The ESM12 has now broken below the Zone-Trader pivot on the weekly profile at 1396.00. Look for sells in this price area with a target at the 1387.00 price area.

The emini sp is currently in a key price range with the bottom of the range falling at 1387.50 and the top of the range at 1408.25. This area is the persistence zone on the weekly profile within Derivative Concepts proprietary trading method called Zone-Trader Philosophy, and it represents where the fight is the greatest between the bulls and the bears. Today the ESM12 opened inside this zone suggesting there is no control bias and the bulls and the bears are currently fighting for control of the market on the week. This tells us traders to expect an increase in volatility and a whipsaw price action, which will lead to stops being run on both sides of the market. The Zone-Trader Pivot on the Monthly Profile is currently falling at 1393.00, since this is the point of control we can utilize this price level to determine trade direction. If the ESM12 is above 1393.00 and making new highs look for buys on the short term, if it is below 1393.00 and making new lows look for sells on the short term. This should help keep day traders on the right side of the market over the next few trading sessions. Also take note of the half and quarter lines that fall within this zone which is designated in orange as they will play a role in support resistance and direction as well.

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First rule of trading is to know your strategy and to be perfectly clear on why you are executing a trade.  Trending environments are the best opportunity for my strategy as I am a trend follower.  Over the last four months we have seen some very interesting and distinct trends.

August and September proved to be difficult months for the major averages, but proved great trading opportunities for both intraday and swing trading techniques.  October was a strong rally month but also proved to be an excellent month as it was "Get Long and Get Loud" as my old mentor used to say when the market was rallying strong.  Then all of a sudden November came and the trend was reduced to days and sometimes simply minutes and now December seems to be carrying that same torch.

Referring back to the first rule, you must also make sure you make a lot of money when the market suits your style and sit back and be small when it does not.  As I head into my last day of trading as I will be on vacation, I think it is always important to reflect upon what has worked and what needs some work.  

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