Another Choppy Day, But Volatility Around The Corner: August 25th Plan
After the major selloff and clean trend trading from August 15th, market is making traders pay with now three days of complete chop. While there has been movement, all moves to the upside and downside failed to trend meaningfully with price “glued” to the 4145 level. Why is this? Firstly, technical analysis 101: After trend, comes consolidation. Secondly, we are in classic, low volume late summer trading. Thirdly, Jackson Hole is Friday, where Jerome Powell speaks.
Fortunately, this chop is unlikely to last. Not only do we have an end of week catalyst coming up on Friday, but we are also about to enter the most volatility time of the year seasonally in September. While I don’t trade based on seasonality, it has some useful tendencies to pay attention to, particularly in September.
In today’s newsletter, I’ll be talking today’s messy trading (and how I traded it: It was messy), talking the big picture setup here, as well as September seasonality.