It feels like the market returning on the same pattern all over again – another summer another high volatility range.
Last 2 summers the market has been trading in high volatility range with headlined hitting the indices every week.
The SPY weekly chart below tells the story, last summer we had a range movement of 10 points from high to low couple of times. Only those who where smart enough to short the highs and long the bottom where rewarded as those who where trying to long the range got stopped every time.
We are fast approaching July and it seems that together with Q2 earnings we can expect a lot headlines from Europe as well during the summer. For us day traders this is exciting times that offers a lot of intraday plays setups. All you need to do is be ready when right setup is coming and peak you battles, which means trade with size those A+ setups and let the run but on the same time don’t over trade on the days that the market will consolidate after wide ranges bars.