It hit me tonight that the market action lately is like being on a pogo stick. Up and down, up and down, up and down, bouncing all over the place. Looking at the daily charts you can see the trading channel since early August. We're still waiting for a breakout or a breakdown. In the meantime remember that Simon and Garfunkel song.....
"For everything,
Churn, churn, churn,
There is a season,
Churn, churn, churn.
The only good thing about the daily chart below is that the market seems to be trying to consolidate at the upper end of the trading range. That bodes well for a potential breakout to the upside. And while I would love to see that come to fruition, I just don't see it in the cards. There are too many unaddressed problems from China's inflation to the Euro mess for me to feel good about the potential upside. Time will tell. Keep watching the charts, playing the tape and waiting in the bushes for that tiger to run one way or the other. Then take aim and pull the trigger. But until then, it might be wise to keep your powder dry. Remember Money Management is key to winning this game.
CURRENT MARKET TRENDS
Long Term (Weekly Chart) – Sideways
Medium Term (3 day chart) – Sideways (Trading Channel)
Short Term (Daily Chart) – Down
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