You see it all the time… a market that goes back and forth and back and forth and back and forth over the same price range. I learned to call this “chop n’ slop’ back in my Chicago LaSalle street days.

Something I observed since then, with the help of talking to about 1000 traders over the course of almost seven years of coaching is that traders LOVE to be short. On at least an intra-day basis, this leads to the inevitable short squeeze burst up out of a trading range… and then usually the “fall flat” reversal – to which all those who were short cry “I knew it, I knew it”. Well in fact, all of those bored, want to be short traders actually cause that phenom… by shorting, putting their stops too tight and then getting caught in a tip-off fallout of the first way too tight shorts.

Is that what has happened recently – as we broke out of a multi-day trading range… I don’t know… but it is worth thinking about. Is it long-term players, an election prediction (real hope) or… just a post boredom temporary melt-up?

Visit Trader Psyches to register for Denise’s blog updates.