April 11th, 2024

As Ozzy Osbourne famously sang in his hit song, ‘The road to nowhere leads to me.’ Although I can’t claim to fully grasp Osbourne’s lyrical intent, it feels apt for this market. After consuming all the recent news and data, the market doesn’t currently show a clear direction; it becomes either a day trader’s paradise or nightmare depending on the strength of your strategy, patience, and discipline. Your success hinges on your ability to maneuver in a directionless market…the road to nowhere leads to you.

From a broader perspective, this market reveals a trend that is trending higher but has hit a fuel shortage. However, sellers seem hesitant about selling into lows. This state of affairs generates a volatile tape that still leans towards the bulls, but warns that the market will continue to be rocky with forceful pullbacks that may not have longevity.

Adopting a smart and minimalistic approach is the way to go. I anticipate a pattern similar to yesterday’s today. The crucial point is to stick to your short-term strategy and resist the temptation to enforce anything. Overtrading is a pitfall to be avoided; it only leads to self-defeat.

One important observation this morning is the rally of the ZN which has given a significant boost to the RTY and the rest of the market. If ZN maintains its bid (10 YR Futures), this minor yield pullback might be all the bulls need to keep the market bid today.

Cheers, DELI