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The market
has, basically, fallen asleep over the past two weeks. Traders are using the
end of August to take their last bit of time off before the trading season of
Sep and Oct.
Last year,
NYSE consolidated volume for the month of August was 43.33 Billion shares,
compared to 46.37 Billion in September and 51.37 in October.
Another
factor that is causing the slow down is the wait and see on the Iran
situation. They are supposed to give their final answer by Aug 31st. So far,
it looks like the US will have to go at it alone. Most trades already know
the answer to that situation.
Lots of
economic news is due out in the next two weeks. The market is waiting to
learn if the 17 straight interest hikes in a row would start to get rolled
back now.
The main
reason for the slow down, in our opinion, is that it is summer time and we
are just feeling lazy.
On a long
term basis:
1. The market changed
the trend into an up trend.
2. We made a double
bottom, came up with lots of momentum.
3. Expect this up trend
to last 4-6 months
4. Market is pulling
back now to confirm the change of trend
On a shorter
term basis:
1. The first wave of the
up trend needs to be confirmed
2. The market needs to
pull back and test the breakout levels.
3. It has been a nasty
week so far, completely lacking for volume and momentum.
We have
really slowed down on our trading over the past week or two. Most of our long
term positions are staying in the same spot. No reason to dump profitable
positions just because the market is not moving. We are seeing quite a few
setups starting to form. We expect to see some market movement this week. Get
ready with some trades, the market may surprise you.
Hope this helps,
Shay Horowitz - ShogunTrading
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