Learning to Think Like the Market with Mohan

Site Administrator | June 20, 2012

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The last time Mohan visited the TradingPub he shared 3 Key Ingredients of a Successful Trader.  There was a great crowd for the event but the amount of people who viewed the recording was staggering. In over 100 sessions, this was our 3rd most viewed recording! We are very excited that Mohan returned to the Pub to share with us from over 20 + years of experience "How to Think Like the Market Thinks."  One thing we love about Mohan's events is that he is extremely interactive and invites attendees to email him personally so he can help them.  During the session, Mohan shared:

  • Learning the Most Important Aspects of Reading a Chart
  • The 3 Most Important Ingredients to Trading
  • Learning How to Keep Things Simple and Think Like the Market Thinks...this one will surprise you!
To view a copy of the recording, please click the video below:
To Learn More about Mohan, click the following link Learn More
Updated Blog Post... During the recording, Mohan mentioned that he would be willing to share his Daily Directional Forecast with some of the attendees who emailed him following the event.  Mohan called the next day just about dead on the money... here is a look at his forecast and what the market did that day:
Good morning and welcome to Thursday's trading action.

The market was a Whip Saw mess on Wednesday after the FEDs remarks.

I had forecast in the briefing that Wednesday was a Limbo day and that traders should use Caution in the market. I had also clearly recommended putting on hedges for investment portolios to protect against a downside move coming from these levels.

The market acted in line with our forecast with one of my recommended hedges up over 3% for the day at one point (SPXU).

The shift in the Market Force Indicators today bringing in some bearish elements suggests that today could be a stronger down session.

There are a huge slew of Key government reports coming in today in pre market and up to 10:00 est.

I would not suggest trading until after these reports all come out.

Today may be another good day to stand aside unless you like heavy Whip Saw (who doesn't ..right?)

If you want to trade focus on the bearish side on bounces in the market. More on this below...

Today's Call & Briefing:

With the amount of government reports coming out today anything could happen.

It appears that the market could take a hit to the downside overall and that the whipsaw yesterday was just the FED riggers trying to hold up the market from collapsing.

Usually when I see this type of stuff going on the market will eventually crumble as soon as the Crony component can get their short positions loaded.

That could mean a higher price grind as these crony groups discover the market is going to collapse and want to get net short.

Overall I am seeing bearish elements creeping into the Market Force Indicator readings which suggest downside pressure is coming.

Value Area: 0.00 - 0.00

No Value Area today as the market was practically all whipsaw moves yesterday and real value could not be established.

Buy Pivot Target: 1,341.75 - 1,342.75

Prices are trading at around 1346.00 now as I type.

A move down to this level with prices "hanging down" on this zone could bust lower. The 2nd level support is 1336.50.

Remember: If prices move down to 1336.50 and cannot bounce with the High 5 turning Mega Bearish then the market is most likely going to break down lower.

Breaking under 1336.50 spells trouble for the market as we move quickly back to good ol' 1327.50 which was that first goal higher as you may recall.

Busting under 1327.50 a collapse to 1316 in short order is due.

Sell Pivot Target: 1,357.25 - 1,356.25

This is getting to be stronger resistance up here. We may see a push to 1360.50 today to hold back the buying.

The 2nd level resistance is 1361.50 so that matches up with this other number I have here of 1360.50.

So watch for 1357-1362 zone to hold back any ralies today and consider shorting into this zone for a higher risk trade.

10 Day "Pit Bull" Moving Average: 1,326.70

Look at the Pit Bull here right near 1327.50. So this confirms the first support level under a break of 1336.50 today

Pro Trader's Action

Today could be another high risk Whip Saw session with all the government reports coming out early.

Be sure to check the Economic Calendar shown below everyday to get familiar with these reports and how they affect the market.

We could see some real rock and roll trading action today but higher risk so be careful if you go in as always.

Here is a recap of the trading day.  Notice the price levels from Mohan's forecast above:


All the best, Mohan


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Risk Disclaimer: Past performance is not indicative of future results. Futures trading involves substantial financial risk. Views of guest commentators do not represent those of Article intended for educational purposes only and not meant in anyway as a solicitation to buy or sell certain securities. Please consult your personal financial adviser before using this information for your own trading purposes.