Some days you just watch
When the Russell 2000 starts trading less than 10 points a session I find it pays to become extremely selective. Going back five days we have had ranges of 9.70, 9.40, 10.90, 6.80, and finally yesterday’s 16.60. Maybe things are looking up.
Maybe they’re not. All I could see today were several pullback trades with whatever small trend there was at the time. I use two moving averages to help define a trend. Since I like Fibonacci numbers, my short average is a 13 period simple moving average (sma) and the longer one a 34 sma. If price is under both, I consider the trend down. Reverse that for uptrends.
I wasn’t comfortable with the early reversal, but there was a short entry about 8 o’clock (Pacific) and a long entry about 11:00. I actually got stopped out on the short before it moved. Should have watched the nice yellow trendline. Call the day a scratch. Which is probably not too bad since we are back below a ten point range, and finished up near yesterday’s close.
