Well, after all the hysteria, today was a ho-hum day. No capitulation and not many major breakdowns in stocks that I watch. Instead, most of the stocks on my watchlist traded within support and resistance ranges. Even the stocks that made 5 percent plus losses, like DECK, are within the middle of their S/R range.
Thus, I am still maintaining a trading portfolio balanced with longs and shorts. Until I see a major breakdown or capitulation move, I can’t pick a direction.
Those with a long bias are going to say today was great. The bulls came in and cut the losses. That’s a minor miracle when you consider the news.
Bears are going to point to all the negatives across the financial landscape, and point out that the bulls could not mount a gain after getting a surprise rate cut.
What do I say? I’m not a bull or a bear. I am a trading agnostic. I try to be as objective as I can. I don’t care which way the market goes. All I care about is finding an edge, in either direction, and making money off it.
My only “edge” right now, and it’s a weak one, is I am seeing more short setups than long, and volume patterns point to more downside.