Value of Perfect Information

I was talking to Keirsten last night and had mentioned that while out running, I came to the conclusion that for almost 8 weeks, we had a somewhat repetitive “style” of intraday trade.  When yesterday’s session deviated from that “style”,  it became difficult for me to quickly adjust. 

I think its somewhat safe to say the market is changing its rhythm (*I’m not making a bearish, bullish or range call – just an observation).  Judging by today’s large Relative Volume, I assume higher time frame traders are now active in the markets.  Of course since its earnings season, this should be expected.  However, the recent reaction(s) to news events is no longer being ‘shrugged off’ as inconsequential.  (Truthfully, I knew something was suspicious last week when we saw very very low selling volume in reaction to the (way) worse than expected housing data.  Perhaps that was a clue the market was becoming overconfident.  But hey, if the Fed continues to buy the market (reportedly), who cares, right?! ) 

Anyhow, I have yet to adjust to the market’s new rhythm nor fully define my edge.  For now, I’m gonna stay with small position sizing and fewer trades.