April 28, 2004
On Tuesday, the Nasdaq opened firmer and initially rallied but found its high and began to sell off. Then after chopping sideways throughout mid-day, it resumed its sell off in early afternoon trading. This action keeps it below short-term and longer-term resistance.
The S&P put in a somewhat similar performance but managed to stay in the plus column. This action keeps it right at its 50-day moving average. It also keeps it below shorter-term and longer-term resistance.
As I pondered what I would talk about tonight, I began to think that I really don't have anything to say.* After all, there were virtually no meaningful setups, the indices remain choppy, below resistance, and appear to be settling into a sideways trading range---pretty much the same thing I have been saying lately ad nauseam. Then, right as I reached for the phone to notify my copy editor (who is now back from vacation, so you can stop emailing me to tell my how bad my grammar be**), I began to think, maybe I do have something to say:
Don't try to make something happen by trading in these less-than-ideal conditions. Or worse, don't jump to another methodology. Trade your style. If you are a trend trader, use this time as a chance to take a break or better yet, do a little market research.
So what do we do? Let the markets come to you.
No setups tonight.
Best of luck with your trading on Wednesday!
*So what else is new? There, I saved you an email.
**For those with no sense of humor, I purposely used bad grammar in this sentence.
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