Today was a prime example of the trading we have been seeing for weeks now. You know, gap higher on some fluff PR's from pre market then the sideways trade begins. Today was more of a "melt" higher than a straight gap up then sideways. Recognizing scenarios like today are key to profiting in market conditions where only a few names present solid opportunities. Very light volume on the upside today was the tell tell sign bears were not completely asleep, when Whitney came on and said she was the as "Bearish she has been" the bear's showed their might and slammed us on nice volume back to the 50 day MA (15 min ES_F chart), which we happened to bounce hard off of at the open. Betting on the tape before the tape starts trading is the end all be all. If you bet on a down market today you were royally wrong, if you waited patiently off open you would recognize we're going to melt higher based on price action and follow through to the upside. Ok ok, we did not see much follow through but at least there were a few ops like AAPL and BMY. They did not trend all day but if you played them them as an intra day swing keeping your stops tights you did well.
Maybe today was a turning point in the market, though i highly doubt it because buy programs once again came in going into the close. If we as traders can recognize these moves and their subsequent outcomes this market will become much less frustrating. Do not get me wrong, this market frustrates the shit out of me, but now that i have seen this exact tape numerous times i have finally started accepting the fact moves up will be on no volume and down will be on higher volume. If you can take these two factors and trade based on them, picking inflection points in the market like today @ 1110 u can capitalize on trend reversals. In my opinion the best way to capitalize is using index ETFs.
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