Since our last update the SP-500 rallied a little bit more right into that resistance zone we talked about in our update on October 14th 2011.
We are currently seeing increased volatility which makes us Sit On Hands-a term we use a lot! We do not feel that this increased volatility is good for our risk/reward so we are waiting for the market to make up it's mind. There is no reason to risk all the profit made after calling the bear trap low beginning of October as we are not trading junkies - we are professional traders! We are also not trading for fun but for the profit and consistent profit at that!
Until the market gives us more evidence of which way it will go we will stay in cash when it comes to the daily charts. We are currently trading intraday moves as the risk/reward is better. We are able to achieve our targets between the news alert coming from Europe. Lately the news can move the market 3-4 % in a matter of hours making the swings on the daily charts too much for our liking. We do not see any reason to hold big positions during all this debt talk about Italy and Greece.