Even intraday, this market is punishing anyone trying to navigate it. This is the most ridiculous manipulation I've seen in a top and truly it ought to be investigated by the SEC. With all their circuit breaker rules, why they allow this kind of senseless volatility to exist for the sole reason of stripping people of their accounts is beyond me, except for when I consider the fact that the government is complicit in these events or at least turns a blind eye to them. This is why we do not chase every 200 point day up or down. As I have recently pointed out, over the last 4 weeks, the market has gained no ground, yet we have seen the S&P rack up 29.13% up or down combined and 315.37 S&P points up or down and a net move over the period of +0.09% That's a lot of movement for not even 1%! That's what I call a meat grinder and that doesn't even take into account the intraday highs and lows-you could probably double those numbers!
Tonight I've taken some of the positions I posted about a week ago and updated them to reflect the market's move since then with new stops and entries, many can be entered now.
The end of day rally has me wondering what they intend to pull out of their hat in the a.m. Maybe a gap up and a bearish engulfing candle of that hanging man in most of the indices? That would be nice, at least we'd have some follow through and in our direction as well.
This is exactly the reason we have our core trending shorts at 50% and not 75 or 100%, the market needs to follow through and show us before we commit the rest of the position. Please consider not reacting to every shuck and jive of this market, that is exactly what they want you to do. Be patient and follow your risk management plan.
check out tonight's updated list. If this market does follow through on the negative divergence and hanging man, they should be in perfect position to make some money. This is not a market well suited to any kind of trading at this point, as today showed, even day traders can't hold a position more than a few hours without getting whipsawed. This is not by chance, it is by design.
Also check out the longs I put up last night in metals and mining, the momo crowd should be back and URRE that jumped 34%, was a long on 6/2's list. I hope someone got a pice of that one.
Look for an update in the a.m. I can't imagine the market will not have a reaction to the unemployment #'s that came out today, or at least that they won't use them to create even more volatility.
5 years ago
