We Are In A New Type Of Stock Market Environment

There are many online stock traders we speak to on a daily basis who are very frustrated while the market keeps making new highs. "Normal" market conditions for a trader would be 3-5 days in a row up, in an uptrend, 2-3 day pull back then go long again.

This is not your dad's market anymore. The trading environment we are experiencing today is that of a global market. US traders are trading our market and quite often one or two foreign markets as well. Foreign traders are trading our market as well. Buying and selling pressure is coming from all over the world now, it's not just domestic money.

Traders who are frustrated are trying to guess or anticipate a market turn, and with good reason, we have not had a consecutive day run like this in over 80yrs.

My point is this, good traders who last in this business adapt. Old school traders who have been nibbling from the short side "because that is what normally happens after a consecutive streak like this" are off balance right now. It would appear that the globalization of trading has created a new paradigm that we need to adjust to.

The FED did nothing with interest rates today, which is not a big deal, that was expected. What is a little spooky however is listening to all the talking heads announce there is no reason for the market to stop going up every day. I am not a genius, but everyone on the same side of the boat is not a good thing. Take a little off the table if you have been long for a while.

If you are in need of an experienced ear to talk to, I will be more than happy to help. Send an email to prenzulli@keystonetradinggroup.com Put "mentoring" in the subject line.