ATR - Action plan

Not much changed today. The action was mundane with no major moves ahead of the Federal Reserve interest rate decision tomorrow afternoon. Gold was very strong, up 3.4% to lead on the day as a result of weakness in the dollar. Despite some hot early action, the semiconductors couldn't hold on to their gains today and closed slightly lower. Volume was light across the board and breadth remained negative through out.

While it would be fun to conjure up a grand thesis or find hidden meaning into today's action, it would be nonsensical and a waste of energy. While we hold our belief that we are experiencing a stealth rotation into technology, along with our quick and nimble trading strategy, participants aren't doing much ahead of tomorrows meeting and that's that.

In the event that Dr. Bernanke does anything other than to raise point and give us no further clarity, one must be ready. We aren't expecting any surprises tomorrow but it is best to be mentally prepared for any number of scenarios. Should the news be more hawkish than expected you might want to be quick to unload some positions or to tighten stops. On the other hand, should the news be more dovish approach the buying will be fast and furious and we'll want to have a shopping list ready.

Despite the fact that we find it pointless to develop a grandiose thesis regarding the future of the market, a short term action plan is a must. While tomorrow may be a non event, being prepared will be the key.

Have a good evening.
 

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RevShark