Where I See Opportunities
As we embark on yet on
another week with the averages sitting at multi-month highs, I
continue to find the intraday setups, while robust, to be few. Each day presents
me with only a handful of opportunities. I gave this some thought over the
weekend. We (for those of us in the trading business for less than 10-15 years)
are witnessing a market which we have never had to confront. A market that is
working its way out of a major decline and an economy which is arguably still in
a funk.
Restraint and patience continues to be the battle
plan that pays off for me. Those who have joined me in my new
Trading Room have witnessed first hand how
patience and selectiveness leads to consistency. Most days recently are spent
watching and evaluating. The first hour is still the most vibrant, with action
dropping off dramatically around 7:30 AM PST. Nonetheless
THERE ARE OPPORTUNITIES.
The market is due for some sort of a pullback,
when however, is anyone’s guess. I am anxiously awaiting it however, since in
the last week, any sort of downside price action offered the best trading. The
lower price action offers far more decisive price action also, at least
currently. Based on this, one can assume that the “longs” are nervous and not
100% convinced that this rally, while persistent has much longevity. I for one
(granted this is uncharted territory for me too) have this nagging feeling that
something just ain’t right. Time will tell.
One of my colleagues, who is quite good at
identifying slightly longer-term intraday setups (10-15 minute duration) has
been extremely quiet in recent sessions. He is rarely finding quality setups and
he has also told me that his trade frequency is way off. So, it is not just us
HVT’ers who are fighting off boredom.
| Support/Resistance Numbers for S&P and Nasdaq Futures |
||||||||||||||||||
|
My new trading service, “Dave Floyd’s Trading Room,”
through which I offer live real-time audio commentary, analysis and alerts is
now available. I encourage you to check it out.
Click here for more information.
As always, feel free to send me your comments and
questions.
P.S. I also have a new trading module available which teaches how to trade my HVT
style through bar-by-bar chart simulations.
Click here for information about the module.