A typical trading session for a Monday as volume came well under Friday’s level. It is an option expiry week as well as a FOMC meeting week. Thursday is the big day where we will find out if the Fed will raise interest rates for the first time since the financial crisis in 2008. For the most part stocks mainly treaded water throughout the entire session. This week will likely be quiet heading into Thursday trading session. While anything is possible do not expect much from this market until Thursday. Today’s session was not that bad and could be considered consolidation. Stay patient and an open mind.
We still have yet to eclipse last week’s high and big distribution day. Odds still do not favor this market continuing its run higher. That being said it is no guarantee and we need to be ready for whatever may come our way. It is standard thought if the Fed raises rates stocks fall. If the Fed does not move rates higher stocks rally. The only issue is what if stocks do the opposite of what we might think? Do you have a plan? Where and when do you exit? Many simply do not have a plan and end up losing money.
Not much from today’s session would excite many. Day Trading opportunities are still scarce and in a low volume environment it is not wise to force trades. In any strategy forcing trades is a terrible idea. We have covered this before and we will continue to reinforce this issue. Do not force trades just to trade. Walk-away from the computer screen. Live to fight another day.
Let’s not read too much into today’s session. Tomorrow we will see Retail Sales figures as well as a reading from the Empire Manufacturing index. These should not move the market too much, but will certainly give an indication of how the month of August performed with back-to-school sales.
Stick with the plan.
