There was a bunch of chatter on our desk before the Close about a dead market. DQ, a solid young trader, was complaining, “The energy stocks stopped moving. They don’t move that well after 2:30. Nothing is movin.” I remarked, “So take a look at some of the financials, young fella.”
MER was sitting there at 25, bobbing and weaving above and below 25. The XLF couldn’t break 20.80. It looked like it might be a slow summer Close. And then pop! The XLF traded strongly above 20.80 and MER started to climb above 25. It was like guarding that great shooter who always roams the perimeter and then out of nowhere takes it to the basket. For the remaining 45 minutes of trading you couldn’t ask for a better trading opportunity in MER and/or XLF. They both traded higher and higher. Chop!
There are gonna be a ton of opportunities this summer for you to mail it in into the Close. There will be many days where you could convince yourself out of a strong Close. Let the market tell you what type of Close there will be. And remember last August was a huge trading month. Leave the predictions about the Close for the guys who wear suits on TV. Just trade.