Are we all set to rally in a narrow range from here ???

Sentiment is so poor on Wall Street ..that the thought of rally is farthest from the mind of traders/investors......

This market's narrow trading range of 6% has crushed portfolio to its lowest level in terms of equity.....

Unless you had AG stock previous week...you are very discouraged......

To be honest with you...there is not much to like about this narrow range bound market.....

BUT..IF you are daring enough....you CAN quickly trade in or out...it is like MAX 24 hour trade..

Also..IF you have a bad stock which is going south...better get out quickly..as loss will mount in this "nervous" market....

SO..let us see how major index have fared as of Friday :

S&P 500 is Down 5.79%....RSI 40.55%

Nasdaq is Down 6.49%......RSI 41.36%

As we are hitting lower & lower range on the downside...it is safe to conclude that we MAY not go up to the upper trading range....meaning indices MAY trade within 3% from low to high.....

Based on the close of 1071.69..we MAY be looking @ S&P 500 going to 1099 area.....

As this market trading is dominated by High Frequency Traders...3% UP move may come very quickly in matter of two trading days.......

So...the reality of this market for a long long time is a trading range which IS getting narrower & narrower.......

I am TRYING to trade within this range with most of my trading ideas......IF they don't pan out I still get out before its too late.....

Here is my $/sector allocation as of Friday's close :

LVS 37.36% Casino Operator
AUY 33.46% Gold Mining
CNQ 16.24% Oil & Gas producer
SOLF 12.94% Solar

As you can see.....I have no Tech exposure as they ARE under performing for a while...although there are some good ideas i trade like BIDU from time to time...

Good luck with your OWN survival guide in this negative trading environment.

BLOG does NOT give buy or sell.

Saleem