Less Is Truly More
Yesterday’s action in the morning started out like
many other days recently, quiet and choppy. I was just about to throw
the towel in for the morning at around 11:00 AM EST when suddenly the market
came to life. The S&Ps traded back above the highs of the day, traded
through good resistance at 883, and started making a run toward the 900 level. I
cannot remember the last time the post-11:00 AM EST session offered better
trading than the normally active opening. We are truly experiencing a unique
market.
So how is a trader to make sense out of this somewhat
random price action?
- Be flexible, there is no room for opinions
- Execute your plan
While many of you may say, "Gee that is really
insightful. Where have I heard that before?" Let me tell you, if you do not
focus and execute your plan, you will not be consistent in this market. It is
far too easy to get sidetracked, whether it be chasing some other methodology or
some hot story stock. Less is truly more.
I have gone through these periods many times in the
past, you get through one way and one way only, keep your head down and execute
the plan. Period.
One thing you can be reasonably sure of currently are
the technical levels on the S&P futures. Refer back to yesterday’s
S&P Support/Resistance Numbers as well as the comment I made regarding the
S&P 500 Cash Index. At most of those levels, the market paused and then made
a move away from that number. Knowing these levels in advance will assist you in
establishing or exiting trades in a very timely manner.
Today, the market will be dealing with the
disappointment from Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating) last night. Perhaps this will be the catalyst to add a little vigor to
intraday price action.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 915 | 993 |
| 906 | 989.50 |
| 903 | 983.50 |
| 895 | 969 |
| 886-89 | 964 |
| 872 | 960 |
| *868* | 951 |
| 938 |
* indicates a level that is more significant.
As always, feel free to send me your comments and
questions. See you in TradersWire.