Tuesday, October 21, 2008

Tuesday Notes - Sporadic Pace

4:00pm - Until late morning today, I was frankly starting to get concerned about the market volume and pace over the last day and a half, which have been "spurty" at best. Even today's early morning bounce off yesterday's late day 15-min supports wasn't particularly smooth.

Thankfully, the market provided some improved action on the late morning sell-off and again on the two afternoon reversals, and I was able to do slightly better than yesterday's scratch to the tune of a $10K chip gain.

Yet the attached 60-minute chart says a great deal in terms of no trends or extremes on that timeframe ... which usually results in some quick flip-flops on lesser timeframes. The chart also shows the declining volume and ADX which is adding to the lack of conviction.

So the plan for now at this end remains staying on the defensive and not forcing things as the market finds its natural rhythm ... which for now is limited to the lesser timeframes.

2 comments:

Chuck said...

These "flip-flop days on lesser timeframes" are a blessing compared to the violent days just before. I hope we have many more of these rangebound (but still a big range nontheless) days. At least I can get a read on it. Slower speed, smaller spread, more reaction on S/R levels...its all good to me.

Don Miller said...

I hear ya Chuck. Almost gives one time to react :-).