I went through stock market index chart in my stock analytics software and I have to say that markets moved into negative territory again.

But I feel that markets cannot decide if they will resume trend up or will start new down trend move. They are in ranges abound or near important 200 SMA.

Trading in ranges is difficult for me as I do more breakout pullback stock trades.There is only one advice for range trading: short in resistance areas, long in support areas. This is what most professional traders do in trading ranges.

Right now I am more conservative and will follow advice of old traders - preserve your cash . The most important for every trader is to have cash - if you have not enough cash , you cannot trade. That is why stop loss should be used.

This entry was posted on Wednesday, December 19th, 2007 at 1:11 pm and is filed under Stock market chart analysis, Stock market comment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.