3 Adjustments You Can Make In This Market
The Dollar? Who Cares!
Despite the Dollar Index
(DXC) crashing down to new yearly lows yet again, the stock market continued to
take it in stride. Hey, I am no economist, other than my degree, but a weak
currency simply cannot be a good thing. Time will tell.
The odd thing about yesterday’s in-action in
stocks, did you see the 1-minute chart of the S&P futures during the first
hour? Boring, how the heck can you trade that? This simply reinforces the
point I made in yesterday’s column: as traders, we need to make adjustments. If
you are an investor, enjoy the ride, but be aware of the risks. So what
adjustments can you make?
1. Find sectors that are demonstrating good
range. You will find it is not the usual sectors, so you will need to snoop
around.
2. Focus on 2-3 stocks. With the market so
tight you need every edge possible, “scanning” for $$ will not offer much.
Focused tape reading brings about results.
3. Make it happen in the first hour, if not, get
comfortable with the fact that the afternoon session may not offer much.
This is not meant to sound the alarm, it is
however a heads up to what I am seeing/not seeing presently. I can tell you
that in the last few weeks the trading has not been bad, I just needed to go
where there was more volatility. Yes, the FX markets are a component of that
switch.
Yes, today’s piece was short and to the point,
but that is the lay of the land presently.
| Support/Resistance Numbers for S&P and Nasdaq Futures |
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As always, feel free to send me your comments and
questions.