Market Trapped – Don’t Waste Your Capital – Nothing But Noise

August 25, 2017
Author: Peter Stolcers, Founder of OneOption

Posted 9:20 AM ET - Yesterday demonstrates why I'm keeping my trades to a minimum. The market opened on a positive note and everything looked great for the first half hour of trading. Conditions deteriorated rapidly and a reversal was underway. This is a low probability trading environment. The news is light, the market is right in the middle of its two week range, trading volume has dried up and a major holiday is approaching. If you look at a daily chart of the S&P 500 you can see a tight compression at the all-time high. That low probability trading environment presented a couple of opportunities on the short side once we broke support, but there was no follow-through. In the last two weeks we've seen random moves up and down. We won't see any improvement for another two weeks. Swing traders should avoid this market. Day traders need to tread cautiously. Use the first hour range as your guide. If you did this yesterday you caught a nice short when the low was breached. Look for a few good trades early in the day and call it quits. Support is at SPY $243.80 and resistance is at $246. If the market makes a strong directional move and it stalls, take profits. This price action is typical for August. Be patient and know that excellent opportunities are just around the corner. . . image

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