Dog Days
These are the
dog days of summer.
Actually, to be specific, of August.
A time when volume slows to a crawl
and a trader can get worn out by a molasses-like market.
There is a reason why market
participants take their vacations in August.
It’s because everyone else does.
And when everyone else does, those who
are still in the market have to get used to things such as intraday volatility
in the form of brief air pockets and breakouts with scant follow-through, among
others.
It’s not only the intermediate trader
that’s being affected by this certain sense of malaise.
Some swing and daytraders are also
losing patience with the ebb and flow that’s going on.
"I’ve had enough of this. That’s
it for me for the rest of August," grumbled a West Coast daytrader after
exiting yet another losing trade.
This daytrader is anything but
unsuccessful, averaging 5 points daily and 7 figures annually.
Now he’s gone until after Labor Day.
If you’re an intermediate-term
operator, there’s no need to feel ostracized by the current market.
Other intermediate-termers, and
players of all timeframes, are in the same boat.
The key is to keep the spirits up, and
also to realize that this lethargy that’s enveloped growth stocks won’t go on
forever.
How does one trade these types of
days?
Perhaps Lewis Borsellino said it best.
"Very cautiously or not at
all," he wrote in his p.m. post.
Among the names, a few leaders came
off after four or five straight wins.
Ariba
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pullback in volume, while Broadcom
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Extreme
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Avici
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pullback.
i2
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as it continues to base below the 150 barrier.
Interwoven
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example of the lack of follow-through to the overall market, as it dove back
below the lip following Tuesday’s clearing of a four-week cup.
Macrovision
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second day of handle construction.
Perhaps the old saw "When in
doubt, stay out" can be modified to speak about volume:
"When without, stay out."