Exposing Ideas to the Envelope of Serendipity

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Tuesday, July 26, 2011

Trading the Dog Days of Summer

Scorching temperatures setting in across the nation in both political and meteorologic climates have been taking a toll on recent market action in a not uncommon phenomenon seen during the so-called "Dog Days" of summer. While there have certainly been some notable exceptions on the record books through the years, historically the time frame stretching from late June into early September has often been characterized by anemic market volume, languishing follow-through, and choppy trading action. This summer we can add a hefty dose of uncertainty surrounding the debt  ceiling debacle to the seasonal Wall Street wilt, and it's not surprising that trading conditions may be less than optimal. Indeed, there are many who choose to curtail their trading altogether in the summer months; but for those with developed risk management skills who are willing to work with the market's offerings on a day to day basis, plenty of profitable trading opportunities will continue to emerge. Just remember to keep the breeze at your back and scale back efforts relative to the prevailing conditions.

Trade well.

-- Brinkley
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