I must be crazy writing a blog post as I begin my vacation in Nantucket Ma. But I have something I want to highlight that relates to a webinar I gave earlier this month. The topic of the webinar was multi-day inflection points. Identifying these levels and using them as the focal point for various trading plays.

On Thursday August 11th we watched as the SPY support just below 113 in the minutes prior to the market’s Open. Then this level served as support in the late morning and we proceeded to have our first uptrend day in the market since the bloodbath had begun (forgive the term as I just finished viewing episode 1 season 5 of Dexter). The uptrend stalled out right below 119 on Thursday and we saw some pretty aggressive profit taking into the close.

On Friday we gapped up and made a run several times at breaking above 119 and putting in another up leg in the market. But we failed. Yesterday we gapped above 119 and held above on the Open. There was an opportunity to buy on a pullback to 119 in the late morning before it trended back up to the high of the day. That pullback to 119 to the penny and the move up to a new high must place that level at the top of your list for trades in the days that follow.

For me the SPY was pure momentum heaven last week culminating with the slow steady 6% uptrend we saw on Thursday. Now it is about identifying key price levels in the market and making very few discreet trades off of those levels. Most of our attention as intraday traders should be back on Stocks In Play again, and that is why we shared our Morning Gameplan on the blog Friday where we highlighted NVDA and MCP and not the market ETFs.

Now that we know 119 has shown itself to be an inflection point having made two moves of 1+ points from this level you should be ready for the next trade that presents itself.

On Saturday I will be walking for a great charity, Autism Speaks, in support of my 6 year old nephew Jared. Please consider a donation to this very worthy cause. No amount is too small. click here