Timing: Traders and investors are NOT feeling ‘saved by the bell’

Ding! Ding! Ding! – Although, again traders and investors are NOT feeling ‘saved by the bell’… If you called the “bottom” today – It would have had to have been at the 5pm futures open yesterday, or around 1am (while asia-europe traded). We had an over $3000+ move per 1 lot of any of the E-Mini Stock Futures markets – BUT IT WAS OVERNIGHT.

That being said, today, as US Traders came into the market, sure there was a couple of points left to the upside for you to eat like a bird. BUT – just like Friday and Monday sell offs into the close — stocks get slammed again, and your crapping out like an elephant. I agree, stocks will “rally higher again”, but they already bounced overnight, be ahead of the moves, or wait, nobody wants a Monday morning QB.

— Why? —

The answer: “Who cares.”, try not to think, but to trade it. If you are focusing on futures markets, the name of the game is right there — we only “care” about the future. So- it’s best not to get caught up and wrapped up around “Why?” the market is up or down 50pts in a hour. It’s okay to be conscious of where we have been, but focus on WHERE ARE WE GOING NEXT?

If you have ever traded anything before you know “timing is everything”, just like an option has its factors regarding timing, and even just buying or selling stock outright (with no leverage) timing clearly matters — So I think the most important lesson that can be learned today again is just that. Don’t be in a rush to get a trade on, don’t think you will miss the trade or miss out on easy money.

It does not take big size in a market where the VIX is moving 5+ vols and the minis are moving in 3-4% swings. — It takes timing.

I know it is easier said than done, but with these dips, typically “bring in new money or new traders/investors” who have been waiting for an opportunity to “buy stocks”. But as you see, we aren’t going to recover overnight or by the 5pm open, it will never stop moving — All you can control is WHEN you are going to be in and out, so focus on that, define the trade, and then execute it.

Personally I am watching/using the stock future market swings as an indicator / proxy for my other trades. (I’m not going head on against this… yet.), I’m focused on oversold commodities and markets that could show inflation LT. BUT: As for this current “crazy” stock market – When the moment or timing is right, I take my best set-ups and take small trades between the large swings.


Let’s try again tomorrow. – Happy Trading.

-Bret Rosenthal