Finding Zen in a Chaotic Market

There are some markets which compel swing traders to be rather active, be it pouncing on actionable long ideas in the context of a silky smooth overall market trend higher, or perhaps continually adjusting a rotating market in a tradable range. Other scenarios exist which force us to be more active than usual, too.

But the current market is tantamount to being "card dead" at the poker table, where the correct move to is fold hand after hand, after hand. Some traders will try to create the illusion that they are conquering this tape via roulette wheel style of placing various, offsetting bets across the table and then pointing to the winning bets while eschewing the losing ones. 

In reality, though, this type of market is practically designed to wear out hyper-active traders who feel the need to trade merely for action in lieu identifying a defined, high probably edge. 

As it stands now, the S&P is struggling to hang onto the $250 level, gauging the 5-minute SPY ETF chart, below. Note how price is basically in a big rugby scrum since the post-FOMC swoon yesterday afternoon. If we move decisively under $250, or 2,500 on the S&P, again, we may very well get that elusive uptick in fear and panic via a VIX spike. 

I am still flat at the moment, letting new opportunities set back up. Gold miners, for example, are snapping back nicely. But I suspect they may take a few more days to fully set back up as swings. Pot stocks like CRON NBEV still have my eye as special situation longs.

Other than that, though, swing traders are mostly "card dead" and should remember that premium setups have been dry for a good while now and may not come back so quickly--At least not as quickly as they would like.