Muted Action
It is October,
isn’t it? I am starting to sound like a broken record, which
usually means it is August. Yesterday’s price action was, to put it simply,
disappointing, as two KTNs kept the market contained in the afternoon
session. The bright spot is that with economic numbers and earnings reports
due over the next few weeks, volatility is bound to pick up.
isn’t it? I am starting to sound like a broken record, which
usually means it is August. Yesterday’s price action was, to put it simply,
disappointing, as two KTNs kept the market contained in the afternoon
session. The bright spot is that with economic numbers and earnings reports
due over the next few weeks, volatility is bound to pick up.
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The other part of the equation, at
least from a technical perspective, is that the major indices appear a bit
vulnerable right now, and neither buyers nor sellers appear committed. Look
for quality trading markets, as distinguished by the two S&P one-minute
charts below. Until then, keep your powder dry, the market will always be
there tomorrow.
least from a technical perspective, is that the major indices appear a bit
vulnerable right now, and neither buyers nor sellers appear committed. Look
for quality trading markets, as distinguished by the two S&P one-minute
charts below. Until then, keep your powder dry, the market will always be
there tomorrow.
Chart
1: Friday 10/5/01
Chart
2: Tuesday 10/9/01
Chart
3: Tuesday 10/9/01
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I was talking with some colleagues down
in the S&P pit in Chicago and they also had indicated that action was
muted with no significant participation by the institutions. As I
indicated yesterday, I am using this “down” time to establish some
intermediate short positions. One does not need to be limited by only one
approach. The majority of my investment income is derived from intraday
trading, however, when it gets slow, I can still play the market by extending
my time frame.
in the S&P pit in Chicago and they also had indicated that action was
muted with no significant participation by the institutions. As I
indicated yesterday, I am using this “down” time to establish some
intermediate short positions. One does not need to be limited by only one
approach. The majority of my investment income is derived from intraday
trading, however, when it gets slow, I can still play the market by extending
my time frame.
Key
Technical Numbers:
| S&Ps |
Nasdaq |
| 1078-79 | 1300.25 |
| 1062.5-64 (confluence)Â |
1282 |
| 1057 | 1268.5 |
| 1053 | 1262.66 (confluence) |
| 1048.9 | 1245 |
| 1037.96 | 1238 |
| 1033 | 1211 |
| 1017 | 1190 |
As always, feel free to send me your
comments or questions.