Prove It To Me
The early market action
remains in the “prove it to me” mode as we continue to witness
multiple attempts to reverse more emphatically to the upside only to stall at
the upper end of the market’s longer-term intraday ranges. What this basically
leaves us with is a nice (for traders) rangebound market where oscillation
opportunities present themselves and locking in intraday profits into range
extremes is paramount. Liquidity on the Qs also continues to reflect July market
participation, or lack thereof, which is another reason to either scale out of
or exit trades when the supply is there unless one is positioning longer term.
WednesdayÂ
July 25, 2001Â 11:50 AM EDT
Flexibility
Watching longer-term equity values erode over the last several days (ok,
months…16 to be exact) reminds me of one of the reasons I left a
comfortable position to pursue this crazy business called trading, and that is
flexibility. Not just flexibility to do what I want to do and work where I want
to live, but complete flexibility to be in or out of the market on a moment’s
notice, a benefit that most fund managers don’t have since their clients are
paying them to be fully invested in whatever fund they’ve chosen.
No decent setups? No
problem…we can stay in cash. See
a high-probability setup or in sync with the market rhythm?
Great, we can press harder. Not
feeling well or the market simply isn’t conducive to our style? Cash
and golf courses can be a nice combination. Yet, I think sometimes we forget (he
says to himself) and perhaps even abuse the flexibility advantage this business
offers us.
Good trading (or
golfing).
For
a more in-depth look at how Don trades the QQQs, click here.