Asleep At The Wheel
After three weeks of solid volatility, the equity index markets have calmed down considerably. The SPZ has been in a very quiet upward move this morning, making a high of 1428.50. Currently, the range for the session is less than 1%, as dealers are very quiet. I would expect volume to be half what it was during last week’s busy period.
Because of this, it is important for traders to realize that these markets do not give a daytrader the same opportunity. One must adjust their game plans in order to make it jive with the current market enviroment. What I try and do is hold onto my trades for longer, and hold fewer contracts for the duration of the move. In other words, put them on and be patient. Wait for the market to play itself out.
As for the rest of the session. As long as we hold above 1423-1425.50, I am looking for the market to test the 1436 level. Only a trade below 1417 would make me look at the sell side. If that occurs, I would look for 1405.