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MysteryTrader's Commentaries

Trading for a Choppy Market

by MysteryTrader on Jan 29, 2007

Last week's downside reversal was in reaction to a couple of disappointing earnings surprises. It looks to me like nothing more than an aberration within the larger trend, which seems to be growing increasingly choppy. Also, stock and group rotation seems more important than the general market trend.

Seasonal tendencies are bullish this week.

But be very careful on Wednesday. There could be big volatility (in both directions) around the 2:15 p.m. Fed policy announcement. Trading around that news is uncomfortably close to gambling.

Buy dips and sell rallies. Limit risk. The trading range, choppy market, I have been looking for may be starting.

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About the Author

MysteryTrader

Almost nothing is known about the Mystery Trader. If there were anything much known, he or she would not be such a mystery, would he or she? We can say only this: the Mystery Trader has been trading for a long time, has learned a few things, mostly the hard way, has traded all kinds of crazy financial instruments, has made AND LOST an awful lot of money, and has not died broke well, not YET anyhow, but there is still time for that. The Mystery Trader writes these impressions and thoughts as a kind of an uncensored stream of consciousness journal or diary, largely for his or her own amusement, but also hoping these thoughts might help readers somehow, perhaps occasionally, prevent them from doing something stupid. The Mystery Trader hopes that his or her thoughts might help YOU keep from losing YOUR shirt in the world's biggest casino. The financial markets are notoriously tricky and have ALWAYS been loaded with disinformation, deception, raw deals, chicanery, and outright criminal theft. Unfortunately, little of this bad behavior is caught and punished because the financial markets are too big and chaotic. The Mystery Trader certainly and explicitly does NOT recommend that you blindly accept any ideas presented here or take anything expressed here at face value as actual fact. On the contrary, if anything, the Mystery Trader hopes that this blog might encourage you to think entirely for yourself and develop your own UNcommon sense. Be careful, have fun, and good luck!

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