Budapest Z 10:01 GMT March 27, 2008
very good points Flip. Imo one has to have an "internal switch" (call it gut or a quantified methodology) that helps determining to play rational themes or just be reactive to market movements. At least that is how I try to approach markets.
san diego bobl 16:07 GMT March 27, 2008
When I review the marketplace I begin by learning as much as I can about what the market is doing with information that affects the trade. Technically, I review US interest rates first, and like today when I find the long and short end disparaging, then I usually know right away that the market is not trending and I expect to find noise about. Then I review futures, a discounting Forex mechanism, and again, if I find them unilaterally mixed, I know again that we'll see countertrend movement, agendas, and news driven individual scenarios. Going down the list, I check metals and energy products........followed by the ags. Today again has mixed metals and crude products...another sign of intermarket noise.
Then I feel prepared for Forex data...always listening to bubblevision and news servers, and watching reactions. To state the obvious, I choose not to go full size or even close on days like today... just stay in the game and learn, knowing better trading days follow choppy markets. Lots of narrowing patterns in congestion this year as market has a lot on it's plate.