Hello my name is Mark and I am a technician.  I have sat along side hundreds of traders in my career and most if not all of them are always searching for the why that something is going on in the markets.  I always believe that it is good to be informed and having opinions is part of being a human but I tell my students to think "what is, is" which means don't fight what is going on because it does not fit in with what you think should be going on.

In the last few months the S&P 500 has been on an absolute tear up 24% since July and with the Fed backstopping all the assets in the world why should stocks ever retreat, but now we circle back to the first paragraph.  The market peaked four days ago right at a very important resistance level of 1225.  This point dates back to where the S&P was trading just before the Lehman collapse and all of a sudden the momentum in the market has waned.  Is this a coincidence?

The answer is that it does not matter, as a technician I care mainly about choosing the correct level to execute an order and very little else and the truth is that getting short at that level is the right trade, even if you are ultimately wrong it is the right trade and the type of trade that carries such a high positive reward to risk ratio that every trader must work to exploit that level. This market is terribly hard to short and to want to stand in front of the Fed is a difficult task to take on, but the facts are that the S&P came up to an important level of resistance and have been unable to penetrate and hold above that level, which means that short ideas should be traded aggressively at this time.

Frankly I am very comfortable trading both sides of the market and my teachings are such that I believe it is very tough to be a successful trader on only one side.  Traders that have worked with me often are amazed at how quickly I can be long a stock and then flip it right around and be short the same stock.  I am agnostic to direction, I simply follow the levels and do my best to execute properly.

Yes, I am a technician and I am very proud of that.

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