Strategies for Short Term Traders: Choppiness, Noise and the Way Markets Really Work
Good Morning.
Yesterday assimilated a lot of negative news and it was a good sign seeing the market hold.
Many Country Fund ETFs are again hovering near their 200-day moving averages and we know from past history that when this occurs, markets tend to get choppy until the longer term trend solidifies itself. We saw this in January 2010 and 17 months later it’s occurring again.
This is extremely normal and what it does is increase the level of noise/chatter in the marketplace. Choppiness is not a major bear market nor is it an impending depression. It’s simply choppiness and it’s the way markets work (they always have and likely always will). Eventually the market will move from its 200-day ma and a major trend will again establish itself.
The above is from Larry Connors’ Daily Battle Plan. To learn more about the Daily Battle Plan – including access to Larry’s daily ETF trading signals, click here for more information.
Larry Connors is founder and CEO of TradingMarkets.com.