Friday, March 26, 2010

Midday Briefing for March 26th: In the Range


We've moved back into the day's trading range, and indeed are within a multiday trading range. Chartists will be tempted to see a head and shoulders pattern developing, as we see both momentum and strength waning even as we hover near bull market highs. I'm watching closely for relative performance of commodities and other risk assets, as well as small caps, to handicap the odds of that head and shoulders scenario playing out.

I'll be returning to Chicago today and will have more to say about markets and indicators when I return. Stay tuned!
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1 comment:

Eric said...

http://traderfeed.blogspot.com/2009/02/following-stock-market-like.html

Hello Dr. Steenbarger. My name is Eric. I'm a new trader, and recently discovered your blog. Your blog is very educational. Your 2/24/09 entry made me chuckle for a bit b/c I've always done what you describe as "flow conversation" since I was a kid. Are you an NF temperament?

But that got me thinking that human behavior is really what drives the market. Human behavior can't be modeled or described fully by mathematical equations. So trading methods must go beyond blackbox, algorithmic equations and so on???