This was a difficult year for Trend Trading as the market was not able to find trends for the most part and changed direction several times. It stayed in motion long enough for us to get signals but then it shortly reversed after that and resulted in a high level of volatility.
Trend Traders like volatility, but perhaps not as often and as radical as 2011.
Let’s look at the S&P 500 through the $SPX Index
Except for a nice steep late summer decline, there were just too many short changes in direction.
One interesting observation is that for the buy and hold investor here, the end of the year was just around where it was at the beginning.Read More