The Only Way To Play
While yesterday’s action offered more range from a daily perspective, the
intraday moves were very short in duration, with quick snapbacks. I found
yesterday to be a very challenging day. Scrambling for a few pennies on
each trade is not my idea of trading, so by the early afternoon I was done. Two to
3 point moves in the S&Ps is not enough to make for
good scalp trades.
The market is still in need of a catalyst in order to get
some sort of a continuation going, whether it be Middle East, deteriorating
dollar or some very good or bad economic numbers. While I know many
traders are frustrated with this slow summer trading, I think we should all be
thankful that at least we are trading around numbers that offer a few intraday
setups. It could be worse, quiet trading around insignificant technical
numbers.
Going into today’s session I still recommend initiating trades around key
support and resistance numbers on the S&Ps and Nasdaq only. You will
notice on the one-minute chart of the S&Ps, that the only moves of three to
five points take place at these numbers, everything else is a 1 to 2 point
move, which as we all know is very difficult to trade. I firmly believe
that this is the only way to play this market until there is some capitulation
either way, at that point, you can go back and take trades off less important
technical numbers and still be rewarded. Keep an eye on the dollar and
your ears / eyes on the situation in the Middle East.
Key Technical Numbers:
| S&Ps | Nasdaq |
| 1191 | 1599.83 |
| 1185 | 1560.33 |
| 1170 | 1537.75 |
| 1168.5 (contract low) |
1524 |
| 1148.73 | 1496.67 |
Remember, these numbers are ideally suited for short-term traders, as they
offer potential trigger point areas to initiate trades. Most of the
worthwhile trades I have done in the last few days have been taken off these
numbers only.
Trade selectively, but be ready to step up to the plate and trade aggressively
if this market gets some follow through.
As always, feel free to send me your comments and questions.