This Is What Skillful Traders Do
Not much has changed,
the market continues to work its way higher, with stocks sometimes
correlating with the intra-day action, sometimes not. For HVT traders, it is
hit and miss. There were several trades yesterday that were set-up, but we
never got the catalyst from the S&Ps; nonetheless, the stocks meandered higher.
As traders we need to learn how to deal effectively with that. It is
frustrating, to say the least; you either accept that as a trade that did not
meet your parameters, or adjust your trading style. I strongly suggest the
former. The disconnect presently is the exception, not the norm; the skillful
trader will continue to wait patiently for the ideal set-ups. Below are some
comments from my right hand man, Bo Harvey:
“The market is slowly working up
into the weekly resistance zone of 1060-1070 in the S&Ps. Be aware of this zone
on your daily and weekly charts since it is very significant from a long-term
standpoint.
The negative divergences in
the HUI and XAU are playing out as they have corrected this week, coinciding
with the countertrend rally in the dollar. Again, much longer term, as long as
the XAU stays above 85-90 and the HUI over 185, the primary trend is up. Also
keep an eye on the dollar, any move under the recent low of 91.00 will signal a
resumption of the downtrend (and likely a correlating resumption of the up-trend
in gold stocks). For now, however, it appears as though the dollar will continue
to work off its oversold condition.”
I have a jam-packed
weekend, with wife and son out of town; other than catching few soccer games, I
will be working on my presentation for the upcoming
Trader’s Expo
in Vegas. However, I will do my best to put together a column for Monday that
will bring you up to date on some of the FX trades and commentary I have been
mentioning in this column in recent weeks.
As always, feel free to send me
your comments and questions.
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