I decided not to put up charts since I'm sure you all know where the markets ended today...I will, however, say that, today, the YM, ES, NQ & TF again rejected a bid to move much further above the pivot high set in mid-August (which I spoke about in yesterday's post below).
That leaves some words from me on some stuff...
I simply want to re-enforce the idea that until there is a concerted and cohesive effort (with a successful outcome) by all world country's leaders (and their governments) to resolve a variety of issues related to debt and credit problems, the slowdown in consumer demand and consumption, protectionist trade issues, and the continued problem of high unemployment, the result will be a continued dwindling of confidence within the business community and the general public. In such an environment, we'll continue to see choppy and volatile markets across all sectors and in all countries for some time to come. Of that, I am certain.
So, not only will I keep a close watch on various market sectors, but also on world leaders and their resolve and actions (or lack thereof) to work together to fix these issues. Any country is only as healthy as its government policies and actions and its results (which must be accountable to and measurable for its electorate...which is absolutely necessary in a true democracy). As long as there is no harmony amongst countries (or even within each country), there will always be uncertainty and volatile times ahead (and not just in the markets).
Mr. Sarkozy said that the Eurozone is not sick...the opposite of sick is healthy. So far, I would not put "healthy" and "Eurozone" in the same sentence because of the discord amongst the countries within the E.U. I'd say the same for the U.S. because of the discord within the political parties...and I see this becoming worse as the focus of politicians turns to the election next year which always brings about a division amongst party goals and policies (not to mention the downright dirty politics that always arises).
If the markets are looking to governments and their leaders for stability and healthy progress on these problematic economic and fiscal issues, they will definitely be disappointed if the leaders and their parties continue along their current self-serving and unproductive and downright destructive paths.
So, how do I daytrade in such a volatile and unpredictable environment...with fierce observation and agility, and the ability to change my conclusions about probabilities and results in an instant.
The ability for change and harmony exists...of that, I'm also certain.
My second biggest decision today is what to have for dinner...
