- The S &P 500 has done very little during the trading session here on Thursday as we have basically been wasting our time in the markets.
- The market has zero momentum after a very impulsive trading session during the previous day.
- So generally speaking, what I think that means is that the market is likely to perhaps try to pull back a bit, but I would not look at that as a selling opportunity.
After all, this is a market that continues to look positive from the longer term, so why fight it? This is one of those things where you need to see this as a situation where you’re trying to find value and if and when it shows up you take advantage of it. It’s really that simple. Unfortunately, though, this is a very stagnant market from a day-to-day basis.
You get one push and then a lot of sideways and I think this is literally the definition of what it’s like to trade in some summers. In other words, don’t have big expectations but do follow the trend. When we drop, it’s probably going to end up being a buying opportunity. And when we rally, you are probably going to have to take your money fairly quickly. After all, there’s no real reason whatsoever to get chopped to death in the middle of the day. So long term swing trading is probably all we can do at this point.
Caution Needed
And with that, I look at it as a situation where you have to be very cautious, but you also have to recognize that you need to find value. Most traders that I know of are aware of the sell and may and go away expression. And that’s exactly what you’re seeing here. Summertime just drifting. Of course, the most important thing to pay attention to is that it is drifting higher overall and that is going to be what you need to pay the most attention to the overall directionality of the market. It’s slow, it’s sluggish, it’s painful, but it’s positive.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.