Todays market action was yet again more of the same narrow range non trending prices.
The market continues to await the Federal Reserves Policy decision tomorrow and also the non farm payroll data that is due out Friday. Therefore any type of short term positions you may have could be vulnerable to the events of the days to come. It is times like these that the best action for short term traders is no action at all at least until the market has an opportunity to digest the forthcoming items.
The technical picture continues to point to a corrective phase just around the corner, but I will not take any such position given the current pending market news. Of course you could very well score big if you happen to be on the right side of the market when the news is announced, but this amounts to nothing more than a crap shoot and I learned along time ago to steer clear of just such opportunities.
If you simply must play then the only logical strategy is to put a straddle on (Long Puts and Long Calls) and once the news is out and the market begins to react then keep the position showing you a profit and dump the one showing you a loss. This is a more expensive way to trade, but a much safer way also.