Here’s An Interesting Volume Statistic
Not even two very
disappointing economic reports (Durable Good and New Home Sales) and
new threats of terrorism can take this market down. While that is good to know,
the news did little to add any volatility, which for traders like ourselves is
far more important right now than price direction. The only thing we can do is
sit tight, yes I know you are tired of hearing that and are expecting some
miraculous technique or approach to solve this dilemma, but frankly there is
none.
I heard on Bloomberg yesterday that not one day
so far this month has exceeded the average daily volume for the year. When I
heard that it made me feel a bit better, but at the same time, adequately
framed, what a horrible trading environment we are now stuck in. Truth be told,
I have made a very paltry amount of money this month in HVT. I consider myself
fortunate; these market are notorious for simply picking most traders’ pockets
clean as every little ‘zig’ and ‘zag’ is traded with nothing to show for it but
a commission bill.
There was some activity however over in stocks
like CA and BSX.Â
The challenge was that they rarely traded with the S&P futures. While it is
tempting to trade a stock solely on its’ price pattern, history tells us that
trades taken without confirmation from the futures will usually end up as losing
trades. So do not let those moves yesterday get you to down, you would have
only been reinforcing bad habits anyways
So, for today, I have no answers, just my
constant message, trade selectively, the market will eventually throw a few
bones our way. Perhaps the release of the GDP numbers and Jobless Claims will
inspire some volatility.
Continue to watch these levels as possible
catalysts to trades:
1118-20
As always, feel free to send me your comments and
questions.
Below is a copy of Wednesday’s article which was
not able to get posted in time. While it is not HVT in nature, it provides some
unique insights.