Market Flat As A Pancake – Possible Speedbump Next Wednesday

Posted 9:30 AM ET - Trading is incredibly slow and it will stay that way for a couple of weeks. We are in a news vacuum and volume is down over 50%. We have been able to consistently find a handful of excellent trades each day and we are done after two hours of trading. Tomorrow China will post industrial production and retail sales. I'm not expecting much of a reaction. Next Wednesday the Fed minutes will be released. This could be a speed bump. The rhetoric turned more hawkish and last week’s labor report (255K) was strong. This could create rate hike anxiety. Flash PMI's will be released on 8/23 and Yellen will speak in Jackson Hole on 8/25. You can see that the news is very light. The market dipped a little yesterday and those losses will be erased on the open today. I am finding an increasing number of attractive shorts. I will stay balanced and I will look for opportunities on both sides. Take some time off from trading. If you feel compelled to work, trim your size, reduce your trade count and set passive targets. I am going to take Friday off and I won't be posting market comments. Use my prior comments as a guide. Conditions will not change much. The breakout at SPY $217.50 can be used as a guide. If we are above it, favor the long side. If we are below it, favor the short side. Look for very quiet trading. Find your trades and make your money in the first two hours. . .

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