Risking Dollars for Pennies

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With a few exceptions here and there, this type of market has morphed into one where swing traders are having increased difficulty finding and riding a quality play. Instead, the market is in consolidation mode with sharp bounces one day leading to steep sell-offs the next. Today, we are off to a soft start as the low-1390’s on the S&P 500 continues to act as a key price area. While it was support a few weeks back, it is now resistance. If the bulls can recapture it, we should see more buyers gain confidence. However, that is a big if, seeing as many daily charts I see remain quite sloppy. Again, this is all within the context of a multi-quarter uptrend, which is why shorting is proving to be far more difficult for ardent bears than they had expected.

The market can change in a New York minute, which is all the more reason to be positioned properly with heavy cash. Mind you, I think some quick-hitting trades can be had. Beyond that, assorted issues like UGP and MDVN are acting very well. Overall, though, I have little interest in stepping in front of heavy machinery to scrounge around for a few pennies.