This market is very frustrating or maybe we are just at one of those points. There are so many ways of looking at this market right now. We are at the top of the 2 plus trading range. We went from the bottom to the top of that range way too fast. It should have failed. Now we are kind of hanging out at the top. The longer we are here the greater the chance we will break out of the top of the range and retest the previous high.
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We are waiting for the Fed right now. It seems like every thing they could or could not do, will let the market down. A classic buy the rumor, sell the fact type of market.
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What happens if we combine the two, the Fed move causes the market to break out of it ranges for a day then fails - do we hit the bottom of the range or retest the low?
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When the market falls into this type of scenario, a trader must be very flexible. They can not put too many lines in the sand or stick to one idea. Markets that are just trending up or down, you can sell or buy the rallies and then sell or buy the declines - a lot fewer questions.
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This lesson I learned too many times the hard way and I am still learning. Keep an open mind.
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1 comment:
Denarii,
I agree. It'll be a "buy the mystery, sell the history" type trade on this FED thing...
Anyway, keep that mind open!
-DT
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