Happy Easter StockBandits!
Last week we saw only limited continuation of the bounce which kicked in at the end of the previous week before more selling arrived on Tuesday and Wednesday. The downside was contained, however, allowing the averages to hold March support. Thursday’s bounce was modest, but ahead of a major 3-day weekend, volume was understandably light. All in all, the indexes finished very close to where they began.
The standout characteristic of the market right now is the lack of lasting momentum. Follow through becomes wishful thinking when caught in a trading range like this, making it very easy to churn accounts and generally overtrade. That said, it’s a big reminder to stay selective with new setups and stick with abbreviated timeframes due to the frequent reversals inherent to trading ranges.
Cash is a position and right now it’s worthwhile to have plenty on hand. Eventually, we’ll exit this range and better momentum will be seen. Until then, we could be in for plenty more choppy price action with gaps, reversals, and widespread indecision. Less is more.
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
