A deceptive market for swing-traders

A lot of folks so far this year are looking at a market up in excess of 10 percent, but when they look at the brokerage statements they are seeing a completley different picture. The fact of the matter is that this market is spending very little time going up despite respectable gains only 3.5 months into the new trading year. 

But here is the problem in this market, and particularly when it involves swing trading, is that most of the gains on the year can be boiled down to only seven – that’s right the number 7, trading sessions. The rest of the time is spent consolidating within a 22-28 point price range on the SPX and with most movements even in those sessions happening in the first 15 to 30 minutes of trading. 

That is not much folks in fact it is a price range that is less than two percent the entire time, outside of about a week and a half of trading this year, . 

For day-trading there is opportunity at specific times throughout the trading session that makes it possible to capitalize in this market. But from a swing-trading standpoint, these major moves are happening often times on gap ups and at the times you least expect it – usually after a sell-off that preceded it. 

Add to the frustrations, that you know the fed is propping this market up, and it makes me want to avoid all together swing-trading short, because I know the dip will be bought up in fairly quick order. 

So there you go… some trading frustrations from the perspective of a swing-trader. All is not lost, we just need to get to where we see bigger swings and more consistent price moves, in any direction, and spend less time vacillating back and forth while waiting for the unexpected move that lasts only 1 day or so. 

Perseverance will get you out of this market, frustration will not!