Overnight the US market continued its skittish behaviour, the Dow Jones down as much as 168 points at one point before a late rally saw it close 69 points higher. It remains a difficult market to trade with wide range days, gap opens, volatility and little follow through in either direction. Up for a couple of days and down for a couple, with stops getting knocked out by the intra-day volatility. A similar story on the ASX, though our market seems to be sneaking in more smaller range days such as was the case today. A tight range, yet the choppy trading that has become the norm over the last few weeks continues. The XJO closed off its highs after fading in late trade to post a 0.8% gain of 34.2 points. Our discretionary setups have a few long setups and a few shorts – however, quality setups where price (pattern) and volume traits are aligning are tough to come by.

Similar stock trading tips:

1. Tuesday 6th September, 2011
2. Wednesday 13th July, 2011
3. Thursday 14th July, 2011