The major stock indexes are trading basically unchanged today after some early morning volatility. Investors and traders alike seem to be waiting on the highly anticipated government job report that will be out tomorrow morning at 8:30 am EST. Today the SPDR Dow Jones Industrial Average ETF(NYSE:DIA) is trading in a 0.40 cent range for most of the session. This makes the markets very dull after the first two hours of the day. Short term day traders must be especially careful in this type of trading environment as computer algorithms take over and try to stop out the small amateur scalp trader. Traders must take advantage when the market is active and the volume is at its peak. After that trader’s must be very selective and try to trade in active markets. Remember the oil market adage, “don’t be a cowboy as cowboys get shot.” Therefore, once the pro traders see this type of light volume, range bound action, they will take a step back and wait for the markets to tell them what to do. Be patient in this environment.
Nicholas Santiago
InTheMoneyStocks.com
