The New Trading Normal?

 THE WEEK

The week started off pretty quiet.  Then on Wednesday trading volume picked up pushing prices higher.  Under normal circumstances, I would have been excited with the higher volume and breaking through a resistance area.  But I knew it was just a Siren’s song- very appealing and alluring on the surface but ultimately deceptive, dangerous and destructive.  On Friday Jerome Powel and Ben Bernanke, the current head and former head of the FOMC were scheduled to speak.  Even though what was said in the news conference was a mere rehashing of their thoughts and philosophies, the Market took a serious dump with high volume for the day before it leveled out.

LOOKING AHEAD

There is one stumbling block next week.  The FOMC will be releases its minutes on Wednesday.  Lately the Market has reacted to the minutes with wild price swings. Probably will this time, too.  The good news is the fear factor among traders has really calmed down and the reactions to announcements are lasting shorter and shorter time spans.

HOW AM I DOING?

Another great trading week for me.  Since the start of DATA four weeks ago, my portfolio is up 37.9%.  None of my gains have been just straight forward – Place a trade and then exit later.  I have had to massage them all changing tactics with each whipsaw of prices.  My teaching focuses on seeing these quick changes and then quickly adjusting. 

This week’s Deep Dive is about setting up trades 

when the Market goes down in a gentler way than it normally does.

OSO GOOD Trades