8
Jul

$SPY Going Nowhere Fast

Tough times for traders of all walks as US markets struggle to find a direction. As I have mentioned many times, I would welcome a true correction to the downside. For one thing, it would give us a direction, at least for the time being and for another, it would allow for a rally after the correction. Markets don't move in a straight line. They zig and zag, wax and wane, but when they zig zag in a tight range, it is not conducive to profitable retail trading. You either get chopped up if you are a swing trader or go nowhere if you are a long term holder. Even uber bears have not made any ground since the beginning of the year as the SPY sits just below the close of 2014, down only half a basis point....nothing to get excited about even for bears. The only traders who may be doing okay are very quick volatility traders but this is risky business and HFT's which most of us don't have on our home trading set-ups.

For those who remember my post that highlighted how many times the SPY has crossed the 50 day SMA in both directions this year, that number is now 14 times since the beginning of 2015. That's 14 times in 7 months. It only crossed the 50 day 7 times in the entire year of 2014.

My advice? Just wait it out. We may not make any money all year but be careful about making rash or risky moves that just put you in trouble. If you can't wait it out because you need to make a living, get a job! 

The following weekly chart in SPY shows pretty clearly the "go nowhere" action we have seen in 2015. 

spyweek78

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