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09/02/11 Market Action

|Includes: SPDR S&P 500 Trust ETF (SPY)


The market continues to be very volatile. I feel that the volatility is going to continue for some time. It is a challenging market to trade and I feel for most people cash would probably be the best position. I took a small trade on Tuesday of last week as the SPY broke above the 121 level. I did not plan it to be a day trade, but I closed out the position before the market closed. In this market environment one has to be really quick to take profits or take the loss if the trade goes against you. I still think that testing the lows on the SPY around 112 could still be a possibility. Overall the risk is high in this environment and one should adjust their trading accordingly.  Due to the volatility, I feel that it is difficult to trade either long or short.

Rahul Parikh
marketharmony.blogspot.com