He’s Chasing You Down

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You can see that the 30-minute chart of the SPY below is menacing enough to keep most of my cash sidelined. The most frustrating thing about trading and writing about the stock market multiple times per day, every day, is that you can put in long hours preparing yourself for a market that cooperates and permits individual stocks to break higher. In this type of market, though, the price action is simply too random to really act on the homework. Eventually, that will change for the better.

Despite today’s selling, we are nearly 60 S&P 500 handles above the August lows of 1101. Thus, you can see that even the shorts are not having an easy time here. If you are a swing trader like me, the best thing to do is still wait out the randomness of the price action. Clearly, the market hates uncertainty and will react in this manner–with two to three days up big, followed by two or three days down big.

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