Range bound action continues | stockbee

7/15/2011

Range bound action continues


As has been the trend in this market since beginning of the year, rallies last for brief period followed by corrections which do not get enough traction. End result sideways moves. There is an extended range that has formed and we keep bouncing between it.

This kind of environment makes holding swing positions difficult beyond few days. There have been constant whipsaws. The quality of setups have not been consistently good. It is challenging environment for certain style of trading methods. It is good environment for day traders.

Underlying breadth has fluctuated widely. But it is what it is. As IBD has been saying third year of bull markets tend to be choppy.

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