What is the best way of describing this market?
Yo-Yo market? See-Saw market? like profits -- see them, saw them, see them, gone?
It's a market that is extremely generous to traders with a bit of technical knowledge, and extremely harsh on investors of all kinds. I don't think a lot of fancy stuff are needed for trading this, just a few technical tools, some courage, a lot of discipline, and a total absence of emotions and bias. Well, that's what I think. Look at this 5-minute chart of SSO
Of course, not every day is as clean and straightforward as this, but when a setup appears, a few simple tools give an edge to the trading job.
S&P chopped along a 46 point range (5+%). At a different time, in a galaxy far far away, this may be considered as volatile, but here, and now, it was just another day at the office.
Nothing’s really changed and yesterday’s reversal is still in place. Volume was light, and breadth was slightly negative
In spite of all the commotion, since the October lows, the market has done nothing - a pause? or base building? Wish I knew the definite answer.
Have a nice weekend!