David Frost // Blog


January 5  

Mid day update: 11:45 am est

Well, there you have it.

Instead of waiting until the opening bell, the futures dropped real fast to the same price level discussed in the pre market notes, took off to the upside and did everything else we expected.

How about the trades?  We’ll there you have it – too.  Fantastic day across the board.

The market remains bullish, no surprises.  They’re headed for a destination which now is not that far away, and we should be on the lookout for signs and signals of a trend change.  It can happen at any point from anywhere.  Does it have to happen – no.  Is it likely within the next couple of days, yes.  We’ll discuss more…..

Pre-Market Morning Notes – January 31, 2019

(Always refresh the page to check for updates before making any decisions)

Overnight, nothing changed.  Futures went back and forth and remain in a bullish position – headed for a destination.

Yesterday’s close was bullish, and we have no choice but to accept the current trend until and unless proven otherwise.

What happens if markets begin to consolidate, or decline this morning?  That would be normal, garden variety behavior.

What would keep the short term (intraday) bullish case alive?  As long as the market continues to close hourly above 2675 – give or take.  Any dip below that area, and the bulls will likely show up to argue about lower prices the bears have in mind.

Normally, there would be retest of the over night highs to see what the resistance feels like up there.  You’ll notice that we’ll be a chip shot away from a big fat round number of 2700.  Is is likely they spike through that?  Yes.  On the first shot – don’t know.  Most would think no, so maybe yes.

Either way, before this rally has a meaningful pull back, we’re likely to culminate at what will appear to be an important price where a considerable amount of over head resistance exists.  (Re: Common Sense Market Analysis Video)

Other side:  What happens if markets start getting much below 2675, closing hourly below, etc…  We’ll address it with an update here if need be, but keep in mind there was a “breakout” to get where we are.  Markets like to go back and revisit these areas a lot.  The ES 2665 – 2667 area qualifies for one of those zone.  There are others lower, but let’s take it one step at a time.

Morning Gap Trades

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  • Current price quote is a few minutes delayed. Refresh screen to see most recent
  • If you haven’t taken the course, don’t do it.  You won’t know which ones are active if a target hits
  • Stocks gaping higher – Target represents resistance prices
  • Stocks gaping lower – Target represents support prices
  • Each target represents it’s own potential trade opportunity and is independent from other support or resistance targets
  • Profit and stop loss numbers are approximate (~), each individual trader must decide what’s appropriate for them
  • When two targets are close together, traders can take a partial position at the first and add of the stock continues to the next
  • Traders should read additional information on the gaps here: Click to read gap notes

Index – Important Numbers For Today (Support & Resistance)

[gdoc key=”https://docs.google.com/spreadsheets/d/1QhELw-732Wu9Qvwq-MnOyjoikta2UVubdckLGKyEQWU/edit#gid=2094392241″ class=”no-datatables”]

  • Prices based on support and resistance zones during regular trading hours only, no pre-market or after hours prices are used
  • These are “important” numbers.  If price is below they are resistance, if above they are support.
  • Support and resistance prices will be updated throughout the day as necessary
  • If two prices are close together, the market can hit one or both. Weaker markets will hit one, stronger markets will hit both
  • Support doesn’t always mean buy, resistance doesn’t always mean sell. They are also targets to exit trades
  • All hourly closes take place on the half hour.  10:30, 11:30, etc…
  • Always consider current market conditions, short and intermediate trends and especially all the material taught in the LazyEminiTrader course to determine entries and exits

Stocks on the Move

[gdoc key=”https://docs.google.com/spreadsheets/d/1QhELw-732Wu9Qvwq-MnOyjoikta2UVubdckLGKyEQWU/edit#gid=1200582653″ class=”no-datatables”]

  • Updated throughout the day based on stocks “in play,” with an opportunity
  • Stops – HC< represents hourly close below.  HC> represents hourly close above.
  • Refresh screen to make sure you’re viewing the latest companies on the move and their next target price

Swing Trade Watch List

[gdoc key=”https://docs.google.com/spreadsheets/d/1QhELw-732Wu9Qvwq-MnOyjoikta2UVubdckLGKyEQWU/edit#gid=1308639283″ class=”no-datatables limit-50″]

  • Swing trades are based on daily and weekly charts only
  • Stops are based on daily closes below specified price and time (daily or weekly close)
  • The stops are the stops for the exact reasons taught in the LazyEminiTrader course.  We stick to the rules
  • Refresh screen to make sure you’re viewing the latest companies on the move and their next target price

Gap Fill Master List

[gdoc key=”https://docs.google.com/spreadsheets/d/1eciysbj_IhCXAvzFGzkXiYOapIYoQGoWe7_AaO1L5uE/edit#gid=0″ class=”no-datatables limit-50″]

  • Gap fill list is dynamic. Prices are updated throughout the trading session making it easy to see which stocks are approaching their gap fill price target
  • There are around 300 stocks on the master list at any given time, you’re seeing the 50 closest to their respective gap fill target

Disclaimer (Not fine print, same as everything else):

It may be hard to believe, but it’s necessary to put certain things in writing so we’re all on the same page.

Trading comes with risk.  This means any trade taken can be a losing trade – that’s the way this business works.  We all need to understand and recognize this is a reality.

Any and every trade taken is your own doing, your own trade and your own responsibility.

The information taught in the LazyEminiTrader and LazyGapTrader courses are for educational purposes and designed for individual investors and traders to learn how to become self sufficient and act on their own.

Any and all information and prices found on this page are also for informational purposes.  All prices found on this page are for guideline purposes only.  Any support and resistance level can fail at any time, on any chart.

We always trade with stops.

About the Author

Trading and investing in markets is second nature to some, but a mystery to others. The goal is to provide a forum where everyday people aspiring to be part time or full time traders will learn how view markets differently and profit beyond their wildest dreams.

David Frost