The Market Is Resilient
- Posted by TheArmoTrader
- on August 12th, 2012
The US markets are resilient. I’ve been watching the intraday action for over the past few months and one thing I’ve seen this year that I did not see last year is resiliency. The market has been showing relative strength, not only compared to last year, but also compared to other world Stock Markets. As of August 12 Sunday Night, it is the 11th best performing market when compared to a year ago.
Now I can have tons of arguments about why the market is this strong (The $FED, decent economic data as of late, etc), but only one thing will pay me at the end of the day, and that is price action. One thing I have learned since I picked up trading was to not short relatively strong stocks and not to get long relatively weak stocks. And right now, the S&P 500 ($SPX) is acting like a relatively strong “stock”.
I expect some consolidation and/or small movement over the next few weeks of late summer trading, before setting up for a move higher after Mid-September.
Of course things can change dramatically between now and then, but that’s why I’m a trader, I get paid to adapt while playing the best risk/reward scenarios.
$SPY – SPDR S&P 500 ETF
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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