All financial markets remain low volume, low volatility, low range, muted. Even the once mighty crude oil futures, a formerly unstoppable market has been throttled to submission flat on its back for the past year. CL traded inside a 50-cent actual price range yesterday…all session long. For the momentum seekers who used to find respite there from otherwise dull markets elsewhere, it is an epic fail now.
So with the playing field completely level now with all markets – symbols equal to one another, you either adapt to the new world order of intraday price behavior, or move away from intraday trading altogether. With that in mind, I’ve spent the past few weeks looking at only the worst of times, those sessions where congestive wedge and chop behavior rules the day.
Tuesday 10/29 was one of those from a large sample size in 2013. Hours of early wedging, one brief directional swing, followed by hours of sideways channeling. No range, no volume, no volatility. All day.
From a CM Patterns approach perspective, there were two (2) possible entry zones in that lone directional move: a pullback inside the pattern sequence and then an inevitable breakout above. Either/both worked perfectly fine. Before and after that, there was no repeated chopped signals from the perspective we filter trades.
Monday 10/28 was not much prettier. One modest swing down, one slightly larger swing up. Still a low-range, sideways session overall…
…But somewhat trade-able if patient. There were trade-entry signal sequences down and up respectively from those muted price moves. That’s the key for days like this, for the worst of times you will ever see. A systematic approach which shelters you from getting chopped and churned is paramount. We have that.
The same systematic approach showing you real price moves before they ensue allow you to make back prior stopped-trade losses to finish tough days near break-even, or potential to finish said days with some degree of net profit. We have that, too.
Doesn’t Matter Why
All year long there have been endless market excuses for the same congestive, sideways market inaction across ALL symbols more than not. Taper talk, Fed speak, debt ceiling saga have been the latest excuses. I’m sure there are others we’ve forgotten and you can be sure of more to come. It doesn’t matter why.
What matters is having the right tools to shelter you from the worst while profiting from all else. We have that. Anyone can, it is available to all, easily enough.
For more daily updates from Austin, visit his blog at Coiled Markets.