“The waiting is the hardest part. Every day you get one more yard. You take it on faith, you take it to the heart. The waiting is the hardest part.” – Tom Petty
As stated on Monday, this business involves a lot of waiting. Not waiting, but rather front running has taught pretty much all of us an expensive and dangerous lesson. Letting the market come to you is better than chasing. Waiting for the ideal set up is better than accepting a mediocre one.
I’m not preaching the old “trade what you see, not what you believe” message. After all, how do you know what you “see” is correct? I’m talking patience in the form of waiting for confirmation to act. This market is oh so close to reversing very hard right now. It teeters on the edge with far less shorts able to hold it back and far more longs on margin able to push it over the edge.