The market has once again shrugged off all sorts of negative news and continued along is merry path of indifference to the real world problems we are experiencing. I can honestly say that I have never seen our economy in such perilous straights, though you could scarcely ascertain that fact by looking at the charts for the last few months.
Of course, the market has been skittish, as of late…and very difficult to trade as it chops along with very wide intra bar (three minute) swings. I have been very conservative in my trading and had only marginal success in keeping myself from being stopped on trades. Note: Look at the length of some of the bars on today’s charts and assuming a 12 tick stop, notice the difficulty one has in staying in a trade. While the direction of the market hasn’t been necessarily difficult to ascertain, the volatility has it very hard to stay in some trades without expanding your personal risk tolerance by widening your stops a few points. I won’t do it, and have been very quiet in my trading as a result of this.
