Market overview for April 6

It was a very choppy session today and we gapped down at the open. My first trade of the day was reversal from the Opening range highs with an SDS long and the trade was good for 60c and 50c on each half. I closed the position when I got a signal to go long the SPY which I took with an SDS short. In hindsight, I should have waited for the SPY to close above the VWAP, but I had a very tight stop in case it reversed - which it did.

After that, I got about four additional conflicting signals (long followed by short, etc.) on the SPY so I scalped a few trades here and there and decided to stop trading as I did not have a good feel for the direction.

On an average day, I'll get 2 or 3 signals using my TA indicators on a 15 minute chart. On days like today when I get several signals, it usually means I need to step aside until the market moves in a clear direction.

I attempted a low risk short in RIMM today as price stalled at R3 - the move was good for at least 50c but quickly reversed and I scratched the trade for BE. RIMM broke out today and the next stop is 67-68 and possibly 77-80.

I believe that earnings will determine the direction of the next move in this market. We have gone up too far too fast in the last 4 weeks, which means that earnings expectations are high. Investors will have their finger ready on the trigger to protect profits. The key is whether buyers will step up during pullbacks.

As usual, good luck with your trading and let the trades come to you!