Here's What Is Required Now

Well, despite all the arm waving and cheering about the market's performance, Friday's close actually put to rest a lot of the reasons to cheer. The market essentially ended the week flat. The S&Ps opened the week at 893, closed the week at 898.50 and put in a low/high of 885 and 819.50, respectively. No, this does not mean the market is going to trade significantly lower, it is just further evidence of how indecisive the price action is. 

Friday's action, after the opening at any rate, was downright pathetic. There were few, if any, opportunities that I saw worth playing. But I do not say this to reinforce a negative attitude, I say it simply as a reminder that there are times (especially now) when you just need to lay low. Many subscribers to my new Trading Room are learning first hand what it is to be patient. Contrary to what my neighbors and many subscribers think, I am not some loose canon gunslinger. Far from it. My goal with today's column and with the Trading Room is to instill discipline and focus. It is far too easy to get sidetracked when things are slow. We all tend to have this nagging feeling that someone else is knocking them dead over "there." While that may be true, it is likely an anomaly or a relatively high risk approach that will not have a long shelf life.

Consistency and the ability to continually focus on the task at hand is what is required now. I personally am always reminding myself that what worked for me from 1994 to present is what will work going forward. Naturally, "slight," and I emphasize slight, adjustments are made over time, but none so radical. Yes, it is a tough market, but it is possible to achieve consistency. Of course, it will not be a really glamorous ride, but money in my pocket right now is more important than looking for that "rush."

So with that, I invite you to join me in my Trading Room. See/hear first what I do day in and day out in order to achieve consistent results. 

Outside of HVT setups, keep an eye on these stocks for some potential trades with a slightly longer time frame (for the day, not overnight):

Short:

Cardinal Health (CAH)

Long:

Analog Devices (ADI)

Boston Scientific (BSX)

Fannie Mae (FNM)

Dave