The past few weeks I have had no entries on my system. This is all by design due to the trading ranges we have see the last few weeks which really began in early June.
See my post two weeks about about market ranges here. The choppy action is probably creating many stop loss triggers for traders on a daily basis. Not for me. You have to be smarter than the average trader and not get caught up in the hyped up news and commentary or events.
So cash is a position for me as the market move through the ranges during summer months. BUT that does not mean I do not trade at all. I shift to some cash flow active trades as often as I see the opportunity. Generally I’ll actively trade in an ETF which allows me to go where the money goes on a short term time frame. My day or active methods is not part of the TradersThinkTanks trading system but a totally separate criteria to stay involved in the action and make money to balance out the swing trades from the system. Short term cash flow works great when paired with a swing trading model.
Expect more f the same ranges to move around and now we may get a July rally into earnings season as the $SPX attempts to move up and over the 1637 mark which is the top resistance trend line slopping down from the may highs. We need some closing prices above this to verify the stage is set to continue higher.