All Quiet On The Trading Front
Strong buying in the first 45 minutes of trading was seen from the dealer community taking the SPZ up to 1461 before sellers began reasserting the downtrend seen over the past month.
The session has been full of starts and stops, not unusual before a major economic release, which we have scheduled for Friday in the Non-Farm Payroll release. Most players, at least for now, are attempting to square their positions ahead this. For a daytrader, the best way to take advantage of this is to patiently wait for a small countertrend trade. This means looking to sell spike up rallies and buying spike sell-offs. Most of the profit potential is found in 250-400 point swings. Unfortunately for those who daytrade for larger moves, this market does not appear ready to move decisively during this session.
My plans are to keep it close to the vest and not trade until the final hour, when I will look for a short covering rally to take us over 1465.