Here's An Interesting Volume Statistic

Not even two very disappointing economic reports (Durable Good and New Home Sales) and new threats of terrorism can take this market down.  While that is good to know, the news did little to add any volatility, which for traders like ourselves is far more important right now than price direction.  The only thing we can do is sit tight, yes I know you are tired of hearing that and are expecting some miraculous technique or approach to solve this dilemma, but frankly there is none.

I heard on Bloomberg yesterday that not one day so far this month has exceeded the average daily volume for the year.  When I heard that it made me feel a bit better, but at the same time, adequately framed, what a horrible trading environment we are now stuck in.  Truth be told, I have made a very paltry amount of money this month in HVT.  I consider myself fortunate; these market are notorious for simply picking most traders' pockets clean as every little 'zig' and 'zag' is traded with nothing to show for it but a commission bill.

There was some activity however over in stocks like CA and BSX.  The challenge was that they rarely traded with the S&P futures.  While it is tempting to trade a stock solely on its' price pattern, history tells us that trades taken without confirmation from the futures will usually end up as losing trades.  So do not let those moves yesterday get you to down, you would have only been reinforcing bad habits anyways

So, for today, I have no answers, just my constant message, trade selectively, the market will eventually throw a few bones our way.  Perhaps the release of the GDP numbers and Jobless Claims will inspire some volatility.

Continue to watch these levels as possible catalysts to trades:

1118-20

As always, feel free to send me your comments and questions.

Below is a copy of Wednesday's article which was not able to get posted in time.  While it is not HVT in nature, it provides some unique insights.

Dave