Aside from the odd play the markets are continuing to be elusive, so we now see if earnings will provide a catalyst to more technical types of movements.
Ultimately we look for recognisable setups so we can navigate our trades in order to limit risk. Choppy markets make this more challenging, so we tend to do more waiting … but this is a sound strategy in itself. The best money is made from trending conditions with obvious setups and a co-operative market. Over the last couple of months we haven’t had the optimum conditions, but if you adhere to my methods you’ll largely be safe while other people out there – without a clear plan – are huffing and puffing, getting nowhere, or worse – doing badly.
Most of the bear flags from last week either didn’t break through or only did temporarily. At this point in time I still have to consider the markets more vulnerable to the downside, but it’s not a confident shout. That means keep observing and be patient.
Earnings are now here, so it shouldn’t be long before we’ll hopefully have more to do.