When there’s no catalyst on the calendar, you need to be prepared for a different kind of trading day — one where chop is more likely than clear direction.
Markets without a catalyst tend to open quietly and often stay in compression mode. Without a clear driver — no major economic reports or news events — the path of least resistance is sideways.
Expect Compression and Be Ready to Wait
Certain days, like Mondays, already lean toward being directionless. When that lines up with an empty economic calendar, the odds of chop increase even more. It’s a classic wait-and-see environment.
The smarter move on those days is to temper expectations. If you know CPI, PPI or a big Consumer Sentiment report is coming later in the week, you don’t want to burn capital forcing trades when the market is just marking time ahead of those events.
In this kind of session, I’m not expecting a lot of movement. Even in positions like my MGM trade, I’m factoring in that it may take longer to hit my target simply because the market isn’t likely to provide a strong directional push when it’s waiting on a catalyst.
Let the Market Show Its Hand
If you don’t get a clear direction early — which is often the case in these environments — the best approach is to stay patient and avoid forcing trades. Watch the open, monitor how your current positions behave and be prepared to hold a bit longer if needed.
With my MGM trade, for example, I had it priced around $1.39 with a $1.50 target. In a flat market, I’m perfectly fine holding it an extra day if that’s what the trade needs. The same applies to other setups — when the market isn’t moving, sometimes the best trade is no trade at all.
Bottom line — when you’re trading a catalyst-free market, manage your trades accordingly, keep your expectations realistic and don’t press for action that just isn’t there.
Kane Shieh
Kane Shieh Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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