Boredom

During my years as a struggling trader, boring market periods in the market were very costly.  If I was sitting in front of my computer, I felt I should be trading.  I would run every scan I had ever thought of rushing to find something to trade never once considering the overall market condition.  Boredom is as dangerous to a trader as the emotions of fear and greed.  It would cause me to force trades or talk myself into positions I had no good reason to buy.  Learning to stand aside when I had no edge was a very hard lesson to learn, and it cost me more capital than I care to admit.  Always remember that you don’t have to trade every day to be successful.  In fact, trading less and only when you have an edge produces better returns and a higher win/loss ratio.

On the Calendar

Thursday’s Economic Calendar is a full one, but there is only report with any concern for moving the market.  At 8:30 AM is the Weekly Jobless Claims which is expected to remain near historic lows with even Puerto Rico numbers declining.  There is a Fed Speaker at 8:30 as well but after that several non-market-moving reports.

On the Earnings Calendar, we have about 45 companies reporting their results today.  Continue to build the habit of checking for reports on the stocks you currently own and those you plan to purchase.  Failure to do can turn out to be a painful experience.

Action Plan

Yesterday again experience a very light day of selling in the DIA and IWM while the SPY and QQQ found some buyers at support.  Overall the volume was light, and price action continues to be choppy.  Unless we have a news event shake us loose, I think we should expect more choppiness today.  Keep in mind the market could be waiting for the Employment Situation number on Friday or even the FOMC next week for inspiration.  Another potential market driver is the pending government shutdown at midnight Saturday if Congress fails to get it’s act together.

I am continuing to prepare for new trades if we see some buyers begin to step in at support levels.  However, I’m in no rush and will wait for buy signals to appear before adding risk.

Trade Wisley,

Doug