The emini was range bound today, and chopped up a few over-traders I am sure along the way.
Signals from the daily chart suggested that the market would probably be contained today.
After hours activity notwithstanding, it was a pretty tight range during RTH, reminiscent of activity a few years ago.
The spirit of 76 was resistance after two gaps were closed, stalling the market after Friday’s range was penetrated slightly technically into a daily and weekly breakout.
Volume was light, and with The President speaking tonight, Geithner hedging a bit, and significant resistance staring us in the face, price was unable to follow through on the breakout.
Frustrated traders trend to make mistakes, and the biggest is over-trading.
Money Management is the key to this business. Paraphrasing the words of the great Jesse Livermore, Don’t lose your line, it’s the lifeblood of our business.
Our capital is our inventory. Squander it in chop zones, and it wont be available to help us capitalize on more meaningful activity.
950 and 1020 are being tossed about by the bulls and armchair economists.
Let’s take it one day at a time and see where we go.
There is always opportunity, and tomorrow should be no different.