New book by Larry Connors - Click here to read more
As we embark on yet on another week with the averages sitting at multi-month highs, I continue to find the intraday setups, while robust, to be few. Each day presents me with only a handful of opportunities. I gave this some thought over the weekend. We (for those of us in the trading business for less than 10-15 years) are witnessing a market which we have never had to confront. A market that is working its way out of a major decline and an economy which is arguably still in a funk.
Restraint and patience continues to be the battle plan that pays off for me. Those who have joined me in my new Trading Room have witnessed first hand how patience and selectiveness leads to consistency. Most days recently are spent watching and evaluating. The first hour is still the most vibrant, with action dropping off dramatically around 7:30 AM PST. Nonetheless THERE ARE OPPORTUNITIES.
The market is due for some sort of a pullback, when however, is anyone's guess. I am anxiously awaiting it however, since in the last week, any sort of downside price action offered the best trading. The lower price action offers far more decisive price action also, at least currently. Based on this, one can assume that the "longs" are nervous and not 100% convinced that this rally, while persistent has much longevity. I for one (granted this is uncharted territory for me too) have this nagging feeling that something just ain't right. Time will tell.
One of my colleagues, who is quite good at identifying slightly longer-term intraday setups (10-15 minute duration) has been extremely quiet in recent sessions. He is rarely finding quality setups and he has also told me that his trade frequency is way off. So, it is not just us HVT'ers who are fighting off boredom.
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My new trading service, "Dave Floyd's Trading Room," through which I offer live real-time audio commentary, analysis and alerts is now available. I encourage you to check it out. Click here for more information.
As always, feel free to send me your comments and questions.
P.S. I also have a new trading module available which teaches how to trade my HVT style through bar-by-bar chart simulations. Click here for information about the module.
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