The “Dog Dayz of Summer” are definitely here…Low Volumes, Low Volatility, Choppy Range Action. As traders we must learn to accept what Mr. Market gives and take full advantage when an opportunity exists, since it may be a bit longer than normal until the next one.
The FOMC Meeting Announcement today at 2:00 pm ET…A full complement of economic releases throughout the week topped off with the monthly NFP report on Friday. Any or any combination of these releases can have a direct impact on price action, so with relative low volumes, best to be mindful and aware of what’s on tap.
Every attempt to sell the SNP down gets a solid buy response, though buyers have not been willing to move price above key 1688 marker…So that remains important level to penetrate for further upside action. Any failure to breakout as we saw in Tuesday’s session attracts aggressive sellers, only to be met buy equally aggressive responsive buyers near prior lows. This is classic “range-bound” or “bracketed” price action where the strategy is to buy dips and sell rips until a clear directional signal is given.
Prior Day HIGH (1688.50) and Prior Day Low (1677.25) are the main boundaries…Multi-day Midpoint remains 1682…As sung by the Talking Heads…”Same As It Ever Was”.
Talking Heads: “Once In A Lifetime” http://www.youtube.com/watch?v=I1wg1DNHbNU
I am at peace with uncertainty. I know there is no such thing as a sure thing. I have no particular need to be right. I understand that being perfect has no place in trading. I am flexible. I am willing to change my mind. I am alert to scenario changes. I accept the information that tells me I am on the right track or on the wrong track.