A very common theme I’ve seen lately in talking with new traders is that they tend to lose sight of their focus. We all remember why we got into the markets and for some the journey to finding a trading style is still in progress. I believe that trading styles match with life styles and personality plays the biggest role in deciding how to participate in the market.
Below are several different time frames of the $SPX which show different perspectives. During times like this, or the financial crisis of a few years ago, the crash of ’87, or whenever there is increased volatility, stick to what works for you. If it’s not there, sit it out and wait. Don’t try to trade like someone else. Now is not the time to be learning a “new strategy” or how to Delta hedge your portfolio.
Emotions are at elevated levels right now and quite honestly technical levels are often trumped by emotional selling. If you’ve had a good year so far (it is only March), sit back, watch and learn. Themes will start to appear again, levels will begin to take shape and then you can get back in the game.