Reminder: Don't Be a Blaster

In overall rangebound and indecisive markets like the one we are currently still in, the temptation for many traders is to blast all-in long or short (or close to all-in) seemingly on a daily basis as the market fluctuates more violently than usual. 

As you might imagine, that strategy can lead to some unnecessary violet whipsaws for most market players. For most, the better play is to stay methodical and patient as the market oscillates until we see a true breakout which holds. To be sure, setups are there and quick hits can be made. But in terms of being a blaster, this sort of market environment seems like it was practically designed to punish that mindset. 

Regarding the nitty gritty of today's tape, the IWM found some prior supply at the $225 level, an area Members will recall was a big one before the recent downdraft in the small cap ETF this autumn. 

There is also the matter of rates pushing higher yet, witness the TLT breakdown to little attention as the focus has been on the debt deal in Washington. Should rates keep rising, my sense is that it will begin to matter sooner than later, once again. 

Overall, I am open to a respite for bulls in the form of some more near-term relief in the likes of ARKK, and I am not throwing on a bunch of shorts. My focus more than anything else is on staying methodical in this broad range and looking for spots here and there.