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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (47871)	5/3/2012 8:15:54 PM
From: Johnny Canuck	1 Recommendation Read Replies (1) \| Respond to of 69245

As traders we alway want the market to be trending either up or down as that is the easiest environment to make money in. Right now the market indices are essentially trendless and stuck in or beginning sideways consolidation patterns. Unless you are a short term trader that measures trade in hours it is going to tough to make money. The hardest thing to do in the environment is to sit on your hands and do nothing. The move averages have essentially converged on the SP500. Despite the lack of the more predictable 3 day up and 3 day down pattern, the index is essentially moving sideways into a consolidation phase which mean traders are not sure which way the market so go. You need to be careful in this kind of market. You can be left behind due to a strong rally or lose your shirt due to a steep sell off. Individually on stocks I have been stopped out of a lot of my portfolio and I am currently sitting on a lot more cash than I expected. I will continue to sit on my hands to a trend emerges. Honor you stops without question in this environment. Despite the new high on the DOW it could not follow through and as a result is also in a consolidation pattern. Same thing on the DOW transports. COMPQ really just at the start of entering a consolidation pattern within a strong intermediate up trend. Same comment on financials as the COMPQ. Gold still technically in a down trend. Energy sector failing to negate the sell signal. If we get another down day tomorrow the Russell small cap index will be back on a sell signal. Nat gas barely holding on to the buy signal. A few more down days and it will be back to a sell signa.