Summer Trading is for Two Types of People

• Posted by DynamicHedge
• on June 28th, 2012

1. Trading/market addicts

2. Professionals

Trading is dead quiet right now.  With the exception of the occasional heart-stopping headline out of Europe the market should get even more quiet as the days and weeks roll on.  If you’re a small trader or investor, this might be a good time to exercise one of your only advantages over large funds and institutions by doing nothing.  Or at least do less.  Pare back your size and save some commission.  Get out from behind your monitors and enjoy life a little.

I will be using the slow time to finish a project/trading tool that I’ve been working on for quite a while.  I’ve been working with a group of traders beta testing the output of the tool.  The results are very favorable and I’m extremely proud of what we’ve accomplished.  I will have more news on this in the next few weeks.

For the trading addicts and professionals I present the three charts I’m currently focused on.

$TLT.  The equity market runs on money and as long as that money is hiding in treasuries we will likely muddle.  Above the blue zone is bearish and below the yellow zone is bullish.

Value vs growth.  This chart is $SPXPV / $SPXPG.  Rallies in the market without this spread accompanying it to the upside are likely short lived.

$SSEC.  China was one of the last resilient charts in the world markets.  I’ve depended on it for an advanced look at US equities for the last couple of months.  Now it just looks depressing.  Watch for directional cues and where it finds support.

 

 

 

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