Sunday, December 4, 2011

Not Much to Do Here (and Not Much to Comment On)

No video this weekend - if any of you were looking forward to it, I do apologize.   I've been working on some home improvement projects the past four to five days (flooring) and am absolutely beat.  One more room and probably another two days or so of work so my focus may remain on other things rather than the market.  I just now took a look at my charts and really, this is not the time to be making any new moves in my opinion.   My breath signal is on a buy so I have a really hard time getting short here, but based on Friday's action, the market is very tired (it has reason to be) and needs some rest.   If that happens early this week, then I will look to get long again as setups appear.   I did try a few longs Thursday and Friday but none worked out.  Even a day or two of sideways action would be great for the longer-term outlook of this potential rally.  We have to see what they can do - the only time we tend to see sideways action anymore is intraday after a huge gap up or gap down. 

As I said a week or so ago, a big part of me still believes the best the bulls can do over the next month or so is some sideways chop, and if that happens...boy, it would suck.   This market remains extremely difficult to swing trade as gaps are now seemingly the norm and predicting what will happen from day to day is very hard.   Europe is not going away no matter what the central banks do, so longer-term I remain bearish.   Nothing surprises me however anymore.  

Good luck early this week if you're trading, but I just don't see much edge at this particular spot.  Depending on how the next few days go, I think some potentially nice setups will emerge.   I'll share those as they come up.   Take care.

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