(This post was written on November 2nd)

I spent a good amount of time during Tuesday’s AM Meeting discussing how when fear comes back into the market you need to adjust your trading style very quickly. I was particularly demonstrative on this point as my experience has shown me over the years that traders, especially less experienced traders, are very hesitant to adjust their trading style even as market conditions are changing.

Well, it turned out that the fear that I was looking for after the large gap down on Tuesday has not yet materialized. Instead for the past two days we have had fairly tame ranges in line with recent market volatility. And today’s action provided some very clean trends in stocks with fresh news, which tends to be the hallmark of slower uptrending markets than weaker wildly gyrating markets.

Our swing algorithm that tracks 400 high beta names was indicating a fairly long bias at today’s Close. Unless I see the market’s range expand over the next two days I will have to conclude that the market has shrugged off the possible collapse of the EU and it is back to business as usual 🙂