2% Gap

Ahhhh, a new year filled with new opportunities. A year to redefine who you are as a trader and a year to uncover your true potential. We enter the new year with a 2% gap and while a trader’s first thought may be to pass this off as the last remaining moments of fun after a New Year celebration, we must remain open minded and objective. Maybe this 2% puts the nail in the bear coffin and sets the stage for a magnificent run. Maybe this gap will provide short side entries that become too juicy to pass up. Regardless of how it plays out there is certainly no rush. If 2011 taught us anything it was that the day to day fluctuations can certainly contrast greatly. What may be incredible bearish on minute, turns bullish the next and of course vice versa.

While my read is for more bigger picture downside (see Tape Talk) I have no desire to rush entries here. I will wait patiently for some sort of sign to confirm my read and then move in. If however the confirmation never comes, I suspect the read will change along with setups that offer bullish opportunities.

I ended 2011 doing nothing and sitting in all cash. With this morning’s pre-market action it looks like that is just how I will begin 2012.

A special welcome to all new Tickerville members. I am glad you have chosen to trade with our fine community and I look forward to an excellent year with you!