There are times when it pays to watch the trade a bit more than you trade the trade. The various tremors rumbling through the market are the sounds of larger players moving the furniture. That may become more of a factor in the week ahead. Readjustments, liquidation, and margin conditions can bring about situations where it is better to let some of the giants wrestle. Large positions executed by various players can set previously successful strategies spinning. Traditional technical indicators may become distorted and unreliable. The RSI crowd and other limited over sold over bought programs will be of no use. Many times initiating a trade will be like grabbing onto a fast moving object.
The bulls will have every opportunity this week to prove they are still in control. They can be aided in a variety of ways that include the Fed. Most of all it will be how fast they can leave a bottom behind them.
