Stock Market Trading with Bullish Uncertainty 9-11-19

Our prayers go out to everyone we lost and their families on 9-11.

The SPY ETF formed a swing high yesterday, typically a signal for a bearish reversal. A setup that would imply profit-taking from the recent bullish momentum. 

But, you can't be a seller at all-time highs, unless you are trading on micro time frames.

So how do you trade? The indecision in the stock market has me reducing share size and expectations for follow through.

I'm in cash flow mode. Not looking to build new positions. To achieve a consistent, predictable trading income it's critical to know the potential of the tape.

You must not throw money away during less than optimal conditions. To be honest, it's easy to make money when it's obvious. The key to longevity is not losing when your edge is small.

I've seen thousands of traders over the last 19 years of coaching blow up because of a lack of patience.

I teach stacking the order flow from indices, to sectors to stocks. The more of those three that are on the same page, the better the odds of success. 

Right now we are stock specific. The lowest on the scale from weak to great.

Be disciplined in your allocation of capital until the picture clears up and you'll be in a good position when it does.

Pete

PS. CAT reached a Saturation Point yesterday. If you happen to be a long the play is to sell a high open today.