Market Commentary 3-1-10 Trade Room Totals

We opened up the live trade room this morning @ 745am EST and we noticed the market trying to tell us a story:

• Monday morning

• Red Pace of Tape (slow speed of the market)

• Flat Trigger Lines (sideways market)

• All Trigger Lines were the same price level (broad sideways market)….

• Dollar Index was sideways (caution)

• Dollar Index has triple-top overhead resistance (negative correlation)

Since it was a Monday, we had to beware of a slow start. The same reasons why YOU don’t want to get up on Monday is the SAME with other traders, so we wait to see if volume will be an issue on Monday’s always.

In addition, we also saw Red pace of tape indicator and flat trigger lines across all timeframes.

Red pace of tape shows slow price action speed, and flat trigger lines tells us that the market as a WHOLE is sideways, everything from Daily charts down to Minute charts…sideways.

We then looked at the Dollar Index today, and we noticed 2 key components:

• Slower timeframe had overhead resistance w/ triple-tops

• Fast timeframe was flat and sloppy, no trend

The slower timeframe tells us to BEWARE trading when the Dollar Index is trading into MAJOR resistance/support, which it was.

The fast timeframe on the Dollar Index tells us we need to wait for it to begin trending. We like to avoid trading ANYTHING when the dollar is flat like it was today.

So we had to be cautious with the Dollar looking like it was, and our patience always pays well

Today was a challenging day, we took 5 trades, 2 of them were winners BEFORE 930am EST, and then we managed to give back a few ticks, but for the majority of the morning, the Dollar Index kept up on the sidelines, where we belong when it trades like it did today.