Our indicators say that we should see a counter-trending up-move tomorrow.  This may not seem surprising in light of the fact that the market can't seem to follow a given direction for more than a day or two.

Another thing I've noted, although not well enough to quantify as of yet, is that reasonably steep one-way days, as we saw yesterday on the downside, are usually followed by a fairly narrow-ranged choppy market.  Again, when you start defining terms like “fairly narrow ranged” or ”reasonably steep,” you find it's pretty hard to fit them into an actual system.  That's one big reason why discretionary traders tend to believe things about a market that a hard-nosed system tester never would.  Testers don't have the benefit of mere armchair philosophy.

In other words, we're just throwing out broad generalizations here, which ultimately probably don't mean much.  A better idea�"just follow the systems.  (These or whatever other ones you can believe in to the point of 100% correct implementation.)

The Biases

Hold mini S&P long.  Reverse both mini Nasdaq and mini Russell from the short to the long side.

The bottom two rows determine the signal.  Dynamic Day One trumps everything�"you always follow it.  When it's neutral, the Monthly Perpetual provides the direction.  Click here for a more in-depth explanation of the rules.

DISCLAIMER: It should not be assumed that the methods, techniques, or indicators presented on in this column will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on this column are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The author, Tiger Shark Publishing LLC, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

Art Collins is the author of Market Beaters, a collection of interviews with renowned mechanical traders. He is currently working on a second volume. E-mail Art at artcollins@ameritech.net.