Seasonally speaking, the last two weeks in August are hands down the absolute worst trading conditions all year. Lowest volume, lowest volatility, tons of sideways chop. All markets, almost all years.
The first week or two past Labor Day itself can be an improvement, or not much more. All depends. As for myself, I haven’t even opened a chart program since the last post here and likely won’t until sometime early September. Simply not enough trade setup opportunity to merit wasting endless hours in a chair, staring at go-nowhere charts.
Once the action picks up to whatever degree it will, I’ll be back at the helm looking for +50 to 100+ tick/cents CL swing trades. Hopefully pick up a few 100+ to 200+ cent moves in the course of holding thru 1 to 3 sessions.
Of course swing trading demands full-margin size capital per contract versus day margin. So that’s a consideration for some. Commodity spread trades often require very little margin, often way less than $500 per contract emini day margin rates. But more about that later on when the time comes for such discussions.
As for the educational side of things here, I guess we’ll find out what demand for (or lack thereof) exists with our soon-to-be permanent new mode. I know that over the past year or two, demand for educational services via intraday trading collapsed across the entire industry. Not for any one company or brokerage… all of them. Everyone. Chalk that up to lowest volatility & lowest consistent price ranges ever seen in the entire history of electronic trading.
That’s pretty much the late summertime update here. Back to work next month, focused on trades that cover distance enough to overcome incessant chop and day-long dead tapes. Most trades will be held two or more sessions. In the case of commodity spreads, weeks at a time or more will be common.
What won’t happen is anyone glued to the chairs, staring at screens, wasting time & life. This corner of the trading world will be all about entering trades at the usual key places AND holding them for distance. Time limits for holding not a factor at all.
Other than that, we’re all enjoying the last vestiges of summertime 2017. See ya when the weather cools off and price action heats up 🙂