Let’s cut to the chase, the market, was much to do about nothing today. Price action was not ideal, but it wasn’t outright terrible. Volume ended mixed. At this point, given the price action last week and the inability for the market to gain much traction here would lead me to believe we are going to see lower prices in the near term. Today, the FOMC failed to inspire confidence they have implemented a sound strategy. The market proved today that we still remain in a state of limbo. In the end, today was not a bad day but wasn’t near the positive end of the spectrum.
We are seeing short setups, they outweigh our long side for the moment. However, there aren’t an abundance of shorts like we had back in 2008 when the market cratered. At this point, we remain defensive and ready to take advantage of either direction in this market. Perhaps we are able to round our higher with increased volume. A more likely scenario would be for stocks to pull back further and getting a nice orderly correction where we have sound price patterns. Keep in mind, from the March lows to the most recent highs we have yet to have sound price consolidation. This is pricisely why we have not seen stocks move like past Monster Stocks.
We at Big Wave Trading keep a watch list of potention new longs and shorts. It is a great way to be prepared for any market situation. Without a sound plan for any situation you may be left behind.
