Tuesday, November 2, 2010

Choppy Messy Action

Look at this chop guys! This kind of action is very tricky to trade. If you try very hard to play this sort of action, MOST of you will end up very frustrated. Like yesterday's stellar start, today is not different. We are starting off well but it looks a lot like yesterday in many ways. Namely low volume ahead of the elections tonight, Fed meeting tomorrow and Employment numbers on friday. If you decide to trade this sloppy action, do so but keep positions SMALL and make sure you are NOT chasing anything. The SPX is still struggling with stiff resistance at that 1200 spot where the weekly 200 moving average is located. Stay light, stay nimble and do not chase!

Good time to relax here. Allow this chop to work itself out.


Sam H. Fawaz said...

I think that's great advice. Many days, doing nothing is the best yet hardest thing to do. Thanks for taking the time to remind us Stewie. -Sam TheMoneyGeek

Stewie said...

Thanks Sam. Sometimes is what you DON'T do that matters.

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