Like it or not there is a chance our federal government may shut down Tuesday if no funding is passed by today. What it means for you, me and your neighbor will vary. Some will take it as a vacation(forced away time) while others will look at it as a reason to hate a political party. No one is right and no one is wrong here. As traders we know to take things in stride. Specifically we know that we should be approaching everything with calm cool heads. Not with a cloudy outlook or with an emotional hammer.
Take a step back and understand that you can only control what you can control. Similar to what the market does everyday. You can do nothing to turn the market around. All you can do is react to the events presented in front of you.
Well the S&P had one goal in mind. Find a happy median and stay within that range. The good news is we know that whatever the outcome, the market will react, then react again. Of course the second reaction will be based on a possible over reaction. So don't look at this as a negative more than necessary and welcome volatility. We've got markets like the S&P 500 and Russell futures give us nice trading ranges and extended moves. All a welcome change and it should be our wish that this continues. These movements though on the heels of negative impact for some, can easily bring better times down the road. Just like a pull back seems like it will last forever we know that eventually things settle down, maybe get worse or get better. We can't predict that and we can't beat ourselves up about it. We just have to be willing and able to react with clarity rather than emotions.
So take advantage of the ranges and don't go around chasing news. Have confidence, but don't expect to know the outcome. Just be there to anticipate quickly or react against and with market direction.
FULL RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.