As traders it is our job to trade what we see. But as humans we may have difficulty being objective evaluating the amount of opportunity the market is offering intra-day. Perhaps you read headlines talking about how “quiet” the market is or that the level of volatility is so low it is too difficult to make money. That information may serve as a distraction to the very good trades that present themselves each day.
One of my favorite things about the SMB Radar is that it tells us in a clear visual way how much opportunity is available to me. If at the end of the day the Radar In Play list is filled with red and the top names on the strong/weak lists are red as well then I know there was money to be made.
There is always a bull market somewhere and there is always a bear market somewhere. Its the job of a professional trader to be there every single day. Don’t be handicapped by focusing on the lack of volume or movement in the indexes (which the Radar highlights as well). Find where the big money is flowing in or out and take advantage of the clear setups that are presented.
Making trades in QCOR, COG, or PHH today didn’t require a lot of grey matter. It made as much sense as avoiding the SPY, QQQ, and IWM all of which did nothing.
Steven Spencer is the co-founder of SMB Capital and SMB Training and has traded professionally for over 15 years. His email is sspencer@smbcap.com.
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