STOCKS HAVE BEEN STUCK NEAR FLATLINE

Continues further the range trading with huge volatility on the positive territory that is a typical pattern of pre-breakout period. Monday all three US markets closed higher and excluding Nasdaq they are staying around their tops which shows they are strong and want to hit new high pretty shortly. Right after the opening yesterday the Dow turned into a three digit loss first and then gained again. This volatility kills most of trader’s nerve. The only way to handle this stress is to reduce the position size.

• S&P 500 +0.2%
• Dow +0.1%
• Nasdaq +0.3%

So far the picture looks good while the investors always buy the dips and pull up the markets. The markets are in big range, but they are not able to drop significantly. There is not any bad news from Ukraine which could push lower Mr. Market.

The best approach if we don’t blame the market for volatility, for the yo-yo pattern just to buy the dips and corrections, but to be able to do this, we need to have patience and good nerves. But all in all those are the two best friends of good traders always.

The yesterday’s moves of Dow, crazy, right?

The BFM Assets Team.