September 3rd, 2014 by Leonard

ES DAILY E MINI 09-03-14

Double click on chart to enlarge, Then the back button to reduce



It was just about a month ago in my previous blog Aug 6, where I posted a picture of the Daily ES-mini chart.

At that time we saw the market touching down on to the 100 day moving average for the 6th time since June of  2013.

The market rallied after each of the previous 5 touch downs to the 100 day moving average. Would the market rally again? or would it fall out of the Rising Bear Wedge?


Once again, the bears were denied as the bulls found reasons to rally the market for a 6th time in the last 15 months from the 100 day moving average and to close at record highs for the month of August.



And to boot, traders found no reasons to let geo-political wars, skirmishes, disputes or barbarism in Iraq and Syria, Hamas against Israel, China tussling with Japan, Vietnam, and Hong Kong, the testosterone ladened Russian Czar land grabbing in the Ukraine and threatening a recession in the Euro zone. And tucked in between all of that, Scotland wants autonomy.

The market is either saying that these exogenous events are all manageable therefore no threat or perhaps the bulls have put on the blinders and are willing to bet on a stampede. Myopia is part of omnipotence

As an example traders are ignoring the declining volume and  the record setting loss of volatility related to slow trading throughout the entire month of August.

It does seem however that there is some awareness of the large Rising Bearish Wedge in which the market resides as prices continue to tickle the underside of the upper line of the pattern over the last 7 trading sessions. 6 of those 7 recent bars are dojis illuminating confusion.

Double click on chart to enlarge, Then the back button to reduce

ES DAILY E MINI 09-03-14 close up

But let’s not get too excited about that ……..The old Scottish saying is “Where there’s muck there’s money” . The old definition of muck is dung. Somebody has to do the dirty work and they get paid well. In modern times it means where there’s trouble there’s money.. And from any perch these days there are mountains, hills and valleys filled with trouble ahead.

Just be sure to keep a disaster stop in the market out of range of your normal  playground when day trading on the buy side. Tis better to lose a little and then find out what caused the floorboards to give way later. Only bulls can start a bear market. It’s the Bulls game to lose

This Thursday September 4, at 4:30 EST and on Saturday September 6, at 12 Noon  EST, I will be conducting a Free online workshop on day trading in the worlds most unloved bull market. You will be catching a glimpse of Novy Market Flow Momentum Charts amongst other subject matter.


To Register for the Free Leonard Novy Webinar

for  Thursday Sept 4, at 4:30 pm EST or for                                              

Saturday Sept 6 at 12:00 Noon EST

Email me at  and type “Webinar” for a registration link

For information regarding classes please inquire at or leave a voicemail at 760 841 1522 Calls will be returned promptly

This information is for educational purposes only.  Trading with this information is done at your own risk. All concepts and writings including the Novy Training/Trading Method NTM© are proprietary and the sole ownership of Leonard A. Novy and may not be reproduced for profits without expressed written permission. Copyright 1995-2014


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