Why Are You Trading This Week?

Posted by Jeff Carter
on August 30th, 2012

If you are sitting in front of a computer screen this week and trying to trade, why? This is one of the deadest weeks in the yearly cycle of trading. Get out from behind your desk and enjoy yourself. Take a mental break.

There is no news at all. That’s why they schedule national political conventions during this time period. They can make some news, and fill the void. Eager reporters get something to do. Jackson Hole is full of economists and financiers this week. Do you really think they are doing anything? It’s a great excuse to go fly fishing on the company budget.

A friend of mine texted me and said this is a great time to put on positions. On that point, he is correct. If you have an opinion, and the market is setting up right, it is a good time to load up on a position you think can make you some money down the road. But the market conditions have to dictate it. You can’t force it.

The markets I watch are all dead. Look at the broader market.

SPY data by YCharts

Range bound and dead.

You might be able to make some money this week. But your goals should be significantly lower than usual. Play for beer money instead of mortgage money. As the old Kenny Rogers song says, “You have to know when to hold em, know when to fold em.”, and right now is the time to pull your ante off the table and take some mental health time for yourself. There will always be another market. There will always be another trade. There will always be another opportunity.

Only the addicts are pointing and clicking this week.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.