The market is lacking direction. Set-ups that have worked for me in the past are no longer working (long or short). There is no identifiable trend to trade. Yesterday’s big move to the upside lacked volume and could have simply been short-covering as traders exited positions ahead of the election.
We are in uncertain times and the market appears to be mirroring this uncertainty. Maybe the election results will bring on a trend. I really don’t know, and that’s the point. When your strategy is not working, your set-ups are breaking down, and there is an impending event that could significantly affect the market, it’s best to be in cash. Opportunities will present themselves if we are patient.