Creepy Thoughts

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The market is still hanging in very well considering how much ground has been covered during the most recent rally. There are plenty of traders having creepy thoughts about a swift roll over. Frankly, that is a reasonable expectation given the wild price action over the past few months. However, it can become dangerous to bet heavily on a scenario that many believe to be a foregone conclusion. As I write this, we have seen some intraday reversals lower in the financials, and the real estate sector is the clear laggard of the day. Again, though, those facts have not caused the broad market to start slipping lower in any noticeable way.

I know that is can become tiresome to preach and practice patience, but monotony is preferable to sloppy trading without an edge. I am still keeping cash levels very high until I see the types of setups that offer favorable risk/reward profiles. Hopefully, a few more trading sessions like we are seeing today will go a long way to setting up more and more charts that are in need of firming up before swing traders like myself are willing to step up to the plate and swing hard.