The markets are in an interesting place. One day they’re up huge. The next, they’re down just as big. It’s volatility at its finest.
And while The Wizard has been getting many Buy and Sell signals, many of them are not getting filled. Over the last couple of weeks, we’ve received many calls and emails asking us why. Here’s the answer:
Currently, the stock market is in a trading range. In layman’s terms, this simply means that the market is moving within a defined price range. As this charts shows, the trading range on the S&P 500 (shown via the SPY ETF) is between 1070 and 1370. And as you can see, the market has been bouncing up and down between these prices for the last three months.
(click to enlarge)
When the market is in a trading range, it is common to see this kind of up-and-down action. And in such an environment, your best option may to be trade shorter term – to use The Wizard’s daily signals, rather than our weekly signals.
The reason is simple: Our daily signals use tighter stops and also have tighter profit targets. They allow you to take profits more quickly, while also reducing your risk. That way, if the market continues to be volatile, you have a better chance of booking a profit before the market changes direction again. Once the market breaks out of this trading range – either to the upside or downside – the chances of a sustained, longer term trend are much higher.
This is just the tip of the iceberg when it comes to knowing how to effectively trade within range-bound markets. It’s all part of Gene’s revolutionary Price Action methodology. We’ll be scheduling some upcoming seminars teaching these exact methods, how to trade without indicators and how to use The Wizard’s signals within trading ranges for an even greater edge.
Keep your eyes peeled, as we’ll be announcing upcoming dates soon.
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