On a more personal level, perhaps you are doing some heavy traveling and cannot monitor trades at all times. Then you had better lighten up and stay nimble until such time that you can focus and concentrate.
But it is nearly impossible to trade the macro. I will build a thesis (flexible one) that supports a particular trading style and will use that approach unless the situation changes. Trading and investing these days is like firing at a moving target – we need to adjust and move our feet accordingly. You gotta have a plan. Understand what is out there and what can effect your trading mantra and style, be nimble.
As for the micro, my job is to find the best charts/technicals under specific time frames and make trades accordingly – provided the conditions set by the macro analysis support the style. We are and have been in a favorable environment for stocks – low interest rates, moderate growth without inflation, a very supportive Fed policy and global recoveries (though China may be slowing down more than imagined).
With that in mind, I take to the charts to find stock and option trading ideas. I’m a stock picker, so finding the ideas that will show strength, power, momentum and flow vs the market is my goal. We are still in a stock picker’s market, see the correlation index below. The lower the index number the less correlated stocks are with the index. Further, sentiment indicates a rather complacent attitude toward risk, and while that can be a warning sign it can also signal continued moves in the market’s direction.
Today, this market is certainly acting like it did in 2013, and behavior has certainly changed. Oh, we continue to run up to near new highs, but our tactics need to adjust. Leadership is sparse, dip buyers are not comfortable getting involved, the market is still under distribution and institutional players are seeing signs of market fatigue. With the indices at/near all time highs that could mean trouble. Under the hood, there are stocks (high beta for one group) that have been hit rather hard. We have trades on still but will put them on a very tight leash and move aside or play the bear trades more aggressively if the currenlty favorable conditions should change.