Waiting For My Favorite Song
On Tuesday, the Nasdaq opened firmer and continued higher
in early trading. However, it found its morning high fairly quickly and chopped
its way lower. Then, around mid-day it began to rally nicely. This action has it
closing well and makes back a nice chunk of Tuesday’s losses.
The S&P also had a decent day after a bumpy start.
So what do we do? Several of the systems that I follow are
triggering buy signals tonight (Close Count on Dow Jones Futures, Oscillator
Swing System and CVRIII-Modified). However, I’m not buying it. Why? I don’t
know. Gut, I guess. I just don’t like the recent choppy and volatile action. I’d
prefer to wait for clearer picture I suppose. Therefore, I think the best course
of action is to continue to keep it light.
No setups tonight.
Waiting For Your Favorite Song
Years ago, Futures Truth published a wonderful
article on trading systems.* Each system worked extremely well in certain market
conditions and then tended to underperform. They likened this phenomenon to
“dancing to your favorite song”. When they are playing your
song, you seem to float on air. However, when the music changes, you find you
can’t dance as well (or not at all).
There are different strokes for different folks.**
For me, it’s momentum-based swing trading. So lately, due to the choppy action,
I have been patiently waiting for the market to play my song. If you are like me
and waiting for the music to change, you might want to read (or re-read) “My
Most Valuable Trading Lesson“.
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
*If you have the issue, please let me know so I can give them proper credit
or possibly re-publish the article.
**Now the world don’t move to the beat of
just one drum. What might be right for you, may not be right for some. That song
(for those of you old enough to remember) should be in your head for the next
three days.