range, range, range, range, range, range range. The last couple weeks has been some of the easiest trading a swingtrader could ever imagine. Bounce between support and resistance.......holy moly! you know what thats called. Swingtrading. Today the market neared the top of the range. As we have known for weeks to get our breakout we were going to need some news. Since I've been playing the range I decided to go back to 50% cash and add a few tasty shorts on some bloated ladies courtesy.
The market took a dip today but it was warranted. We were getting overbought and near resistance. We got some semi-bad news on the PPI front, the men in funny pants sold banks on dilution fears , the dollar was up and boooooooooooooonzai were down 600 points! oh wait 60 points on the DOW. Overall I saw that as a positive even with the dollar $uup rising we stayed even the whole day. You would have the thought with the inflation data the "Gold buggers" and the "dollar whores" would have stood side by side hi fiving each other in the nutsacks (they like it like that) while phoning "Bob The Bear" via a Motorola Startech plotting to take down the market. Not yet......the idea is sound but their will is weak for now.
All in all a good day a decoupling of the dollar carry trade is good in the long run. Oil finally snapped back after a big losing streak. Gas, alt-e plays firing. Amex pennies, BioMania back in action. On the trading front the shorts were working, the longs were working, the options were working. Almost every BOWS pick from the boooom rooom was on fire and I was up green in a most uncivilized manner.
In conclusion...Play the range. Very simple. Load up and scale out...Load up and scale out.