This was a headline at WSJ.com this morning:
Stock Pros Hunt for Market Peak Signs
The bullish run in stocks is spurring seasoned investors to study their favorite tea leaves -- like how much financial television local mechanics are watching -- for hints of a possible retreat.
The problem with watching the market closely day after day after day is that is causes most participants to lose perspective. Knowing that, we are always mindful of the big picture.
As you've read for months now in our newsletter, the take on the broad stock indices is that they've been stuck in a congestion zone. While there are individual hot spots in stocks, the Dow Industrials and the S&P 500 Index have been going sideways.
For intraday traders, the lack of an overall trend on the daily chart has been bad for those who have to make a certain amount of money every day. The fact is that the market cannot be made to do what we want. We have to do as it wants.
We have to go to where the action is, meaning its actually the trader's job to find setups. This means that we don't confine ourselves to trading only one part of the market. We can trade stocks, bonds, forex, anything that moves. Of course, when we get our break, we'll be back on it.
04.03.09 08:49 #