Why Standing Aside Can Be Key
Yesterday morning’s session was a far cry from the conducive price action on
Friday. It just goes to show what a little news in this skittish environment
can do. There were several “false” starts in the first half-hour. After
two
attempts at shorting Citigroup
(
C |
Quote |
Chart |
News |
PowerRating) after the
gap lower, I was chopped up. There simply was no follow through. The
three charts
below depict this.
I am only showing the S&Ps and not the C charts simply
as a way to demonstrate the lack of follow through. Naturally, follow through
has been difficult in recent sessions, but this was really choppy. The key
thing was to stand aside after a couple of tries and realize that the market was
simply not there at the time. It never did materialize for the remainder of the
morning.
Obviously, this was disappointing given that the a
break through recent support normally would have resulted in better price
action.
While the price action certainly played out as would
expected (lower), the swift and decisive nature was lacking.
The bars that preceded the break for the next half an
hour or so were not tradable. Such is trading in the current environment.
Today, we stand at another critical juncture, hopefully
it will translate into some volatility.
| Support/Resistance Numbers for S&P and Nasdaq Futures |
||||||||||||||||||||||||
|
Don’t forget, my new book, “How
I’ve Achieved Triple-Digit Returns Daytrading…4 Hours A Day” is now
available. Order today and you will receive a 10% discount.
As always, feel free to send me your comments and
questions.
PS: Buy my book, and get a
FREE 2 Week Trial to my Daytrading Service.
Click here for more details.