We were eerily quiet for the last 2 weeks, right? When the market does nothing, it is better for us to not do anything as well. If you try too much, you will get chopped up and you will lose heart to play the market when it matters the most.
Last 2 weeks = chop
We = stayed out
Blog = no posts :)
We do have ST, IT, LT short positions but we stayed out of trading, all right? We did the same thing for the 1st 6 months of this year. Market chopped all the participants on a regular basis, we stayed out till we saw signs of movement.
Anyway, previous update here
I mentioned we go bullish VST before driving south. We did go bullish by 40 - 50 /ES points since that post and then came down, but not much. At that time, we too did not expect this boring. We thought the market will show its hand right after. As we checked our charts everyday, it was obvious that nothing was there. We remained quiet.
Current update (chart below)
The odds of the market becoming bearish again have increased as our guage indicates below and primed for the market to move south.
VST - No recommendation
ST/ IT/ LT - Bearish
We hold 25% of our positions in the ST/ IT/ LT time frame as we closed the remaining 75% on that plunge around Aug. 25th = gains $$$$$$$$...........
If you don't have positions now, it is not time to open because this is stupid (FOMC) meeting week. You cannot afford to open a new position this week. If you have positions, be nimble should the trade go against you. GLTA!