Wednesday, December 28, 2016

Don’t Day Trade This Low Probability Environment - Preserve Capital For 2017


One Option Trading Blog http://ift.tt/2iEiUym Posted 9:30 AM ET - As expected, the market continues to float higher on extremely light volume. I don't plan on trading today. Up opens are hard enough to trade under normal market conditions. It is harder for us to spot relative strength since all stocks opened strong. The market is at an all-time high and stocks are over-extended. One small sell order (profit-taking) can quickly turn the stock. Bid/ask spreads are a mile wide and Market Makers drop the bid at the first sign of any selling pressure. Trading volumes are extremely light. Stocks that have been crushed this year …

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