The market "feels" different. Patience is key (SPY)

Pretty vague title i know, but do you feel what i feel? The last week a lot has changed in my opinion in regards to price action across all sectors. The selling has been rotating sectors in a very pattern like manner. You saw the financial, AGs, Solar & commodity names selling off aggressively on relatively negative news regarding forward guidance and just overall overbought conditions. To the average joe this may mean nothing, but to me this is great information. This does not mean i am getting long or short it merely gives me more confidence in the the trades i make. Patience!


More confidence i say? what does that mean.. well in a choppy market with zero follow through an intra day trader can get blown out of his or her positions very easily because the lack of volume coupled with malicious HFT trading. Profits are reduced and anxiety is increased in a slow market, fast markets are where us intra day traders thrive, and so can you. Because of my increased confidence in trades i let trades run longer without the need to micro manage(patience). Lack of patience can lead to increased commission if you keep scratching a trade over and over. A traders market is a market that moves, all the traders on stocktwits should be theoretically making much more cash this week than the first week of the year. HFT trading does not affect the PPS as much when you have a cocoon of volume around your trades. HFT only affects thin markets where they can aggressively bid up or take down a market very quickly per my experience with the demons.





My best trades today were in names which just kept moving beyond what you would expect.. Google on the downside, LEAP, PALM, SPY downside.. If this were the previous weeks market these names would have had one big move off the open then chop the rest of the day with a small reaction to the buy programs into the close.

The standard charts for the few months is gap up and sideways with an upward sloping chart on gaps up. Gaps down charts are opening print down with sideways action tightening up though out the day, if you are lucky she may break slightly below the lowest print the gap down put in. The best way to capitalize on these set ups is patience, patience, patience. Patience makes perfect, almost beyond practice makes perfect because you can practice finding setups all day but if you sell out the trade to soon because you do not have patience and or confidence in the trade you will end up leaving lots of cash on the table.

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