The takeaway for us here is that we need to be looking for clues on what type of character the market is taking on.
Are we still in the difficult chop that dominated the back half of 2014 and all of 2015? If this is the case, traders must continue to operate in a defensive manner with shorter timeframes and holding periods and thus smaller profits. Or, are we reverting back to more of a trending, low volatility environment like we saw in 2013? In this type of scenario, it's more rewarding to buy strength, expand holding periods while seeking greater profit potential.