Long OR Short? OR should you just stay on the sidelines?
Hi,
Oil prices jumped nearly to US $70 per barrel and logically this should weigh on market sentiments. That's the market analysis I got from CNBC, and other internet sources. Well, fundamentals do move markets; But, it's a question of when. Market needs time to digest the information and sometimes it takes days, weeks or even months before market adjusts. What this means for day traders like us, is, we should never let fundamentals cloud our judgement. It is better to be in tune with the market, trading the trend, rather than base your trading on some preconceived notion that markets must react in a certain way due to a certain news. While this might work for investing, it does not work for trading. I would describe trading on a preconceived notion as suicidal action.
Market is pretty flat today with no obvious trend, I couldnt feel where the market is going and even the MACD are showing no symmetry at all. Stochastics however is giving a relatively good signal, but I am still too uncomfortable with price action to enter a trade.
For a full discussion about when to use Stochastics and when to use MACD, please refer to Day Trade Emini for Regular Profits