Tim: Investors should embrace volatility and trade the ranges – $QQQ, $SPY
Dan we are not trading on Macro. If we were the Fed Funds rate would be at least 100bps higher. We are trading on credit fears, Fed fears and China fears. But remember I don’t think the world is coming apart at the seams. I do think there is plenty to be cautious about and most of it is price action and markets that have seen central banks shield them from volatility for 6 years.
When China closes, the Fed is removed from the picture with a terrible jobs print and the VOW and Glencore situations can appear like one-offs the world is a better place for traders. And traders are the only ones active these are not high volume moves.
But I think you understand that and therefore I think what you are saying is the $106 on $QQQ and $200 on the SPY are major levels of resistance to trade form the short side. I agree.
Earnings season, and China will give you fresh ammunition to buy these back lower. There is NO QUESTION investors should embrace volatility and trade the ranges. You will get multiple bites on the cherry.