Vacation Day !
That is what you should do with the markets today. The small rally yesterday is a trap for the bulls. Take a day off from entering any new swing trades today. Today the volatility will spike and the swings in the major indices will be more extreme.
This makes for a good day trading type of day for the experienced trader. But for the swing/position trading this is a day that will just leave you nauseous from the seesaw motion today.
More on this topic
(What's this?)
The Volatility Smile
(Israeli Speculator, 6/3/07)
How to Profit From Volatility Through One Simple Investment
(Investment U, 1/19/10)
How To Estimate Volatility - Importance For The Option Trader - Part I
(Israeli Speculator, 5/28/07)
