Anticipating The Conditions
Was Columbus trying for the
West Indies in search of trade?
Well, if he was searching the ETFs for possible trade opportunities, he would
have come up empty handed. Even though the US Equity markets are open, with the
bond market closed in celebration of his discovery, the edge is reduced for
intraday trade as many market participants are quite simply not home. More than
likely, they’re over at their friend’s place…Slim Jim.
The Slim Jim, a lateral congestion pattern, is typical action that a stock might
produce before breaking out of the pattern boundaries. The longer the
consolidation, the more explosive the move, so the saying goes. Unfortunately,
there are times when you have to have the patience to sit thru an extended
version of the formation…or do you? Sometimes there are clues ahead of time,
such as in today’s session.
With the bonds closed, the percentages are against the equities making a
significant move. Yes, it can happen, and if you’re around for the opening hour,
it might ‘pay to play.’ But, if you get that sense that the ‘high-percentage’
play is in the works, you might want to celebrate Columbus Day somewhere other than your keyboard.