August 27, 2011

Wheelhouse View of the Market

This is the start of what I hope to be a weekly feature just looking at the weekly state of the market. This week I will look just at the SP500, COMPQ, and the VIX daily charts. Nothing highly technical...

Essentially we have broken down and gotten into a tightening volatile range after the decline. The market truly could go either way here, but without significant evidence to the contrary I have to assume the range will result in continuation of either the range or the decline. It looks like it wants to try the bottoms again before making its move, but expectations don't always materialize.

As far as methods, day trading is the best way right now, but I have been so busy with other work that I have not been able to do much of that since early August. Until breadth improves, this is the way it is.





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