S&P 500 Posts Another Day of Chop as We Wait for Bases to Build

"The market does not beat them. They beat themselves, because though they have brains, they cannot sit tight." - Jesse Livermore

NEW YORK (TheStreet) -- Guess what I'm going to say today.

Down, up, down. All we're seeing is more chop and failed breakouts for the most part.

E-Commerce China Dangdang (DANG) hit a recent buy note at $14.50, but that note came with the caveat that most breakouts are failing. So I avoided it.

Cash remains the place to be with very few exceptions. Dividend stocks are holding up and paying very handsomely, as my subscribers know, but other than that, I'm just watching stocks and markets until we see a change.

One of the best things about trading is that you have to work hard when the markets tell you to, and you can take some time away the rest of the time, keeping a looser eye on them.

The S&P 500 (SPY) tried to break down below the bear flag and 100-day moving average right out of the gate today, but my rule of not trading for the first half hour, at least, kept me from shorting it and taking a loss.

This market needs time to set up here, and I'm not 100% sure yet if this will become a nice bear flag or not. Time will tell. So until then, enjoy the summer.

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

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