When All Else Fails - Go Boring
The general tone I am getting from a lot of traders these past few weeks is that of frustration. Many are getting "whip sawed" around in their positions. Lots of stories about 1.) breakouts that just "wont go" and end-up as disappointing head fakes, and 2.) intraday reversals taking them out right @ their stops, just to turn right back in the other direction...FMT!
Its in such markets that we often get asked, "what should I do?"..."ignore my stops?". The answer is "No...never ignore your stops!!"...."just try going a little more boring". The follow-up question is more often than not "What is more boring?"
Really the answer is nothing fancy. Boring just is trying to find your favorite setups in what are often considered, boring industry's. So instead of trying to play high flying techs stocks, or jumping on the precious metals bandwagon, or even going out in your backyard with a shovel in hopes of striking oil, just limit your scans to only run in those industry that we "traders" usually ignore. Industry like utilities, telecommunications, pharmaceuticals, food stocks, railroads, chemicals...ect.
So here are a few "Boring" setups I have my eye on tomorrow.