Low Probability Trading Environment – Take Time Off If You Are Leaking Oil

Posted 9:30 AM ET - Flash PMI's were decent and the market has a small bid pre-open. Trading ranges are tight and volume is low. We can expect this to continue through Labor Day. Today I will let the early move exhaust itself. All ships rise with the tide and some stocks will rally because the market is up. As soon as the market stalls they will retreat. Identifying relative strength will be tough in the early going this morning. I will sit out the first hour and I will watch for strength. The best candidates will surface. I will wait for them to pullback and compress and I will be ready to take a position. My targets will be passive. I have a nice short that I will be day trading today. It is and earnings play and it fits the pattern we trade. Furthermore, it has a pattern after releasing earnings that we will take advantage of. I have already posted the analysis and chat room members will be monitoring it. It's very important that you trim your size and your activity in this low probability trading environment. Patience and discipline separate the men from the boys when volume plummets. If you can make money in this market you can make money in any market. When the volume returns it will feel like we are shooting fish in a barrel. If you are spinning your wheels/leaking oil, stop trading and take some time off. Don't piss your money away when there is nothing to trade. The market is choppy and stocks are making random moves. . .

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