Sunday, December 6, 2009
ENTANGLING: UNFAVORABLE MARKET CONDITIONS
RANGE COUNTER: 17 DAYS
Range counter is at 17 days now. Three market weeks and the market has done nothing. If you are a day trader I hope your name is Jack and your are nimble AND quick. Of course, there are those who say they can find stocks to trade in this type of market for huge moves but I am not one of them. Just not my style of trading. I will wait until the most opportune time presents itself and right now being stuck between the numbers 1108 and 1091 (on the S&P futures) are just not getting it for me. Even the trades we have mentioned the last week were to be considered with caution; either with small positions or none at all. I had a discussion just this week with some trading friends of mine who are beginning to learn to trade in the crosshairs and most of our discussion revolved around WHEN NOT TO TRADE. Keep your money close during times like this so that when the next high probability trading opportunity arises you will have money to trade with while others are fretting over losing trades, grinding out even trades, or just plain losing money. I think it best just to spend time doing other things, like preparing your weapons (both technical and mental) for the next battle. A few of the trades we have been watching will be removed because they have not made it in the crosshairs yet and a few others that we have are moving laterally to up, such as the SMH trade I recommended, closing at a new high for the year. Just need the market to keep them moving. The software triggered three trades on the WEEKLY chart (2 long and 1 short) and there are four new ones on the DAILY chart (3 long and 1 short). Again, nothing to really get excited about but we will watch and wait.
