Here’s What Is Required Now
Well, despite all the arm waving and cheering
about
the market’s performance, Friday’s close actually put to rest a
lot
of the reasons to cheer. The market essentially ended the week
flat. The S&Ps
opened the week at 893, closed the week at 898.50 and put in a low/high of
885
and 819.50, respectively. No, this does not mean the market is going to
trade
significantly lower, it is just further evidence of how indecisive the price
action is.Â
Friday’s action, after the opening at any rate, was downright
pathetic. There
were few, if any, opportunities that I saw worth playing. But I do not
say this
to reinforce a negative attitude, I say it simply as a reminder that there
are
times (especially now) when you just need to lay low. Many subscribers
to my new
Trading Room are learning first hand
what it
is to be patient. Contrary to what my neighbors and many subscribers
think, I am
not some loose canon gunslinger. Far from it. My goal with today’s
column and
with the Trading Room is to instill discipline and focus. It is far too
easy to
get sidetracked when things are slow. We all tend to have this nagging
feeling
that someone else is knocking them dead over “there.” While
that may be true, it
is likely an anomaly or a relatively high risk approach that will not have a
long shelf life.
Consistency and the ability to continually focus on the task at hand is
what
is required now. I personally am always reminding myself that what
worked for me
from 1994 to present is what will work going forward. Naturally,
“slight,” and I
emphasize slight, adjustments are made over time, but none so
radical. Yes, it
is a tough market, but it is possible to achieve consistency. Of
course, it will
not be a really glamorous ride, but money in my pocket right now is more
important than looking for that “rush.”
So with that, I invite you to join me in my Trading Room. See/hear
first what
I do day in and day out in order to achieve consistent results.Â
Outside of HVT setups, keep an eye on these stocks for some potential
trades
with a slightly longer time frame (for the day, not overnight):
Short:
Cardinal Health (CAH)
Long:
Analog Devices (ADI)
Boston Scientific (BSX)
Fannie Mae (FNM)
Â
Numbers for S&P and Nasdaq Futures
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As always, feel free to send me
your comments and questions.
P.S. My new trading service, “Dave
Floyd’s Trading Room”, through which I offer live real-time audio
commentary, analysis and alerts is now available. I encourage you to check it
out.
Click here for more information.
P.P.S. I also have a new trading module available which teaches how to trade my HVT
style through bar-by-bar chart simulations.
Click here for information about the module.