Market Volatility

I am going to write exactly what I shared yesterday. VALID and worthy….but to add I also included a chart of the mini SP with some levels to watch for. 1197 is my resistance and 1141 is support. As mentioned below, we expect HIGH VOLATILITY!

We expect volatility to peak as we approach Friday, ahead of the weekend with Fed Chairman Bernanke speaking In Jackson Hole and Quarterly GDP numbers due early.

Plan for the unexpected. If you are a swing / position trader make sure you have enough “cushion” to sustain these volatile moves and make sure you understand your margin requirements and obligations.

On a different note, GREAT article about “Beliefs” and Trading by Dr. Janice Dorn in our weekly newsletter.

Daily Futures chart of the S&P 500 from August 25th, 2011

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Read the rest of this entry »