Environmental Issues

Posted by downtowntrader | 10/14/2008 08:56:00 PM | 0 comments »

The current trading environment is still not very friendly for swing trading, which is the major reason why you are not seeing as many charts as usual on my blog. There are tons of intraday opportunities, but there is still a lot of risk holding overnight or longer. While Friday / Monday held plenty of oversold snapback plays, we are back in a no man's land of sorts here, caught between the low as support, and all sorts of resistance above. Today's gap fade was about as easy a call as there is. After the strong move on Monday, it was very unlikely that the markets would continue rallying after the gap. If I was a betting man, I would guess that the markets begin trading in more of a range here, as volatility finally dies down a bit. Buyers will more then likely step in on any probe of the recent lows, and sellers will step in at about Dow 10,500+/-500. I am still in daytrading mode, and playing the ETF's for 2-3 day scalps, and probably won't stray from that until things improve on the daily charts. As soon as I see some low risk charts, I will resume posting them. Until then you are saddled with my boring commentary ;-)

Good Trading,