Wednesday 2 December 2009
Spinning wheels would be an apt description of trading in the S & P, of late.
The 60 minute chart below shows how the market has been gapping up or
down throughout most of November, and now continues starting in December.
This kind of schizoid market behavior is certainly not conducive for a position
or trend trader, and it is not even good for day trading with a jump either
higher or lower one day, followed by sideways activity for the balance of the
trading day.
Many, if not most of the markets have been in broad trading ranges, Gold
being the singular exception. Patience is required to allow the markets to
work through this demand v supply struggle, and then go with a more clearly
defined direction, or clearer pattern behavior.
