This market right now is like watching paint dry…
The past few years, we’ve gone from super bullish to crazy COVID year… Last year was super bearish. Then after all that insanity, we’ve had inflation and the Federal Reserve dominating trading action.
Then we thought the Russia-Ukraine war would be over quickly, but it’s turned into a forever war that’s not driving the market anymore…
Now, there just aren’t any big macro catalysts to trade, and that’s made trading incredibly lackluster.
So that leaves us with the question of what we’re supposed to do to try and pull successful trades out of a market that isn’t going anywhere.
Here’s What I’m Doing
The wise thing to do is to trade smaller position sizes.
Quality trade setups just aren’t there right now — there’s no “oomph.” And you need some oomph to make stocks move in a meaningful way.
Take a look at the Nasdaq on Friday. At 1 p.m. ET, so three hours before the close, it was up just 0.05% on the day — 5 basis points the whole day!
At the same time, the Dow was down 8 points, or 0.03%… and the S&P 500 was up just 2 basis points… 2! Literally nothing is happening…
Looking at each major sector of the S&P 500, they’re also all basically flat outside of Consumer Discretionary and Materials being up and down, respectively, just over 1%.
About half the sectors are up, and the other half down — it’s a wash.
Going all the way back to February, we’ve been stuck in this super tight range aside from that move down in early March…
And for the past three weeks, we’ve been stuck in a 1.5% range. Meanwhile, the VIX volatility index has sunk under 17 — a 20 means average volatility and 1% moves up or down each day — and volume is far below average.
It’s almost like summer trading already. Do I want things to be a lot more exciting and fun?
Of course I do, but we can only trade the market in front of us. So until things begin to pick up again, keep your positions small and go do something else with your time.
Get away from the computer screen and do something enjoyable. That way you’ll be refreshed when things pick back… because things will pick up again once we get something to stir the drink a bit.
Jeff Zananiri
Jeff Zananiri Trading
*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk.
P.S. Don’t Trade Before THIS Time of Day
Enter before the market close, exit the next morning and anyone could have grabbed top returns* like:
- 12.5% on ETSY.
- 17.3% on GM.
- 35% on NTES.
- 16.4% on ABBV.
- 113% on JOE.
I’ve just pulled back the curtain on this new way of trading that only requires you to place a trade at the close, and sell it in the morning…
From the market open until about 3 p.m. ET, Wall Street has the upper hand…
They have the ability to move stocks any direction they want…
But once 3 o’clock rolls around, they’re forced to throw up the white flag on just a handful of stocks (see them here).
That’s when we capitalize… when Wall Street is at its weakest.
And now I want to show you how you can use this same strategy.
Go Here to See My Revolutionary Trading Trick
From 12/15/2020 to 04/05/2023 on closed trade signals, the average win rate is 51.45%, and the average return per position (winners and losers) is 1.73% with an average hold time of 1 day on the options, with annual return of 345.66%.