Enjoying The Holiday Pace

Another late post. I'm really enjoying the slower Holiday pace, while continuing to trade and post. Last year, I took a two week vacation from posting. This year, I'm just posting later so I can sleep a bit more. Next year, I may post less but try to add more about hedging, though I haven't really decided.

This morning, the S&P is opening at another 62% retracement level, just like it did last Tuesday, the morning after getting home from Chicago. I didn't trade it then, and I'm not going to trade it now. Here's why. The market is "in the middle." That is, on an hourly chart, there are targets above and below that I'm more interested in, and I'm willing to wait for the market to test them.

The action since Wednesday is telling me to be patient, as it is looking inconclusive thus far. Is it coiling, or triangulating? I will simply wait for a clearer picture and better odds. My ego has no need to be right. Take your ego out of your trading and your performance curve will reward you for it.

What are these elusive targets? The 3 scenarios I'm using are these: the market fails immediately from this morning's 62% retracement level. The market tests the 1232-1235 area. Or the market flops around and heads lower, testing 1200 or possibly 1195.

If I'm wrong, and the market heads to 1292.66, that's fine. That's what I've been waiting for anyway. No stress, just chess. A lot of possible moves, only one of which will be the market's true reality.

And sadly, Vaclav Havel, the Czech Republic's first president after the Velvet Revolution against communist rule, has passed away. I was always inspired by this man, a poet and playwright, who had the courage to say what was in his heart even if it risked imprisonment. And I loved the concept of a Velvet Revolution which proved once and for all that the pen is mightier than the sword. My sincere condolences to his family and to the people of the Czech Republic.