In my opinion days like today serve only one purpose in the big scheme of things – to frustrate, annoy, confuse, shake you out of your position, cause you to second guess your analysis or timing system, over-trade, and lose focus. Two days ago the sky was falling and now everything is better? Time to get long? Or is today a smoke screen?
Today felt more like a day when we are just working off some of the oversold position from Wednesday. No new stocks are showing up on my momentum scan or are breaking out to new highs.
Anyhow, enjoy the weekend and here are the three ways I know to make money if this market is frustrating you. Feel free to add your 2 cents in the comments section. Bullish..bearish…how are you dealing with the chop.
1. Shorten your time-frame to an intraday basis – take profits quickly.
2. Use creative options strategies such as selling calls/puts.
3. Get real good at picking individual stocks. And then apply 1 and 2.