Stock #Market Recap 07/25/11 {Video}

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Only an idiot would trust those politicians in Washington D.C.. Dr. Bernanke may very well look like a genius compared to those members of Congress. The Chinese do politics much better. I am going to slaughter a few Holsteins tonight for supper. All of you idiots driving Maseratis had better learn how to drive a tractor if you want to have jobs in a few years. I will be holding interviews for farmers next week. Contact my hot Asian assistant Betty over at Bloomberg to schedule an appointment.

The highly anticipated debt ceiling fireworks in the stock market have given way to a rather dull session, conjuring up the summer doldrums. While it is true that there is not much hot individual action today, I am many seeing charts continue to work through bases or take constructive pauses after showing strength last week, such as in the semiconductor and financial sectors. The bears were looking for more volatility and for selling to beget more selling today. Instead, those who shorted at the open are feeling the squeeze, as the tape has settled into a routine boring day of consolidation.

As I have indicated over the past several weeks, the macroeconomic issues in the headlines have had very little affect on stock prices. For all intents and purposes, this remains a technical non-event. Trade accordingly.

Some stocks that are working reasonably well today and are worth watching: BGC EXPE PPO WFM WTW

Awesome infograph from Mashable via ChartPorn.org (double click for full size view)

3-minute chart of SPY. Watch it.

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This morning’s situation is a pretty good example of why I almost always choose to refrain from making any swing trades during the opening thirty minutes of each trading session. The mainstream news media, not just the business networks, were closely following the futures last evening amidst the lack of a debt ceiling deal in Washington, building as much fear as they could. When the futures opened much lower, the bears had their prized evidence.

When the opening bell rang this morning, we still had a sizable gap down in progress. Rather than panic-selling at the opening lows this morning, sitting out the open would have seen the bulls make a decent comeback. An important thing to remember as a swing trader is that liquidity is low and price swings are particularly high during the opening thirty minutes of trading, as traders feel each other out. This time period is often referred to as the “Wild West,” because gunslingers looking for quick scalps are the main players, in addition to our high frequency friends, of course. Thus, I usually find it constructive to wait out the open and allow the session to take hold. Developing this habit allows you to refine your patience and detach emotion.

In fact, this technique alone has helped 12631 Trading Room members significantly.