Still no breakout to report, but we are getting close to some sort of inflection point, as patience wears thin. The newspapers have been telling the same thing all week:
(WSJ.com) - Stocks may open on a flat note Thursday, with market watchers awaiting Friday's unemployment data.
At this point, the expected trading range on the day is around 11 S&P points based on the futures, while the apex of the pattern measures around 15 points.
There is something to be said about not worrying about trying to position for any potential breakout, mainly because it seems to hinge on tomorrow's employment number, and for all we know (as usual), it will all be done on a gap open. Hard to control risk, if you know what I mean. That's why our repertiore includes intraday trading of futures. We can always get a piece of it, with less risk.
P.S. I think a lot of people think the market is about to crap out, so the surprise is going to be...up. This is important to know because if a large number of people are caught on the wrong side into a breakout, they help to accelerate the move when they have to get out of their losing positions.
04.03.04 08:50 #