Years ago, I played chess with a friend of mine.
He was much more developed as a player.
That is to say, I knew how the pieces moved … and he was a rated player.
Which is to say, he knew what he was doing … and I did not.
Well, as it turns out, he was coaching me through a game, and he could see that I had moved my bishop out onto the middle of the chess board, and now that bishop was in trouble. He could tell that I really did not know how to extricate myself from the position I had found myself in.
How did I get myself into trouble?
Because all I could think was:
Get into a position to take a piece!
I was not thinking of chess strategies. I was not thinking of pincer maneuvers. I was not thinking four or five steps down the road in order to build upon an overall operation in the game. All I was doing, was trying to take pieces off the board. As such, my bishop was now exposed.
Do you want some help Dan?
“Sure”, I said.
You know … you can also pull your pieces back … such as your bishop at C-6.
All I had to do in that particular case, was to pull my bishop back to my side of the chess board. That was it. To simply retreat. That was all. The entire ‘problem’ I had on my hands, had been solved. That particular lesson always stuck with me. As well as the fact that the solution to a problem can often be staring at you in the face, and your own particular bias will not allow you to see the solution.
The markets are no different.
This morning I had a bearish bent on the market. There was a great day-trade to be had on the short side on Stock Index Futures.
The markets are an absolute technical mess.
Seriously … pull up a two hour chart of the September E-mini S&P 500 Futures I don’t want anywhere near that chop.
What is my bias?
None. I’m pulling back from any directional bias on the market … up or down.
At the moment we have a news driven meat-fest on our hands. So for now? Until a nice clean chart presents itself?
I have no stance. No stance, and no trades to be taken in this market.
I’m ‘pulling my bishop back’.