Contextual Trading with the S&P-500
Jan 25, 2021
This morning, the S&P-500 moved up to slightly new highs and then tumbled 55 points in 30 minutes. Here's the 2-minute chart of that event:
The market found support at the S3 line and then rallied back up. But it was a huge point drop in an otherwise calm market and it probably caught many traders off-guard.
Seeing the market context is an important part of trading in the morning chat room. So, the last trade posted today was a high-probability short of BBBY at 40.70: 
That short hit its target and continued lower, even though the market later recovered.
The point here is that I was trading within the context of the market's overall sentiment. If the market sentiment is bullish, then I don't want to be short. If the market sentiment is bearish, then I don't want to be long.
Overall, I posted 6 trades in the chat room this morning. 5 stocks hit their targets and one hit its stop and then hit its target.
Interested in Bob Joiner's day trading chat room?
At the following link, you'll find a 2-minute video overview and a link below that video to receive more information.
