For some time now, index traders I know have been whining about the trading environment.  I can't disagree with them.  Today's action shows just how ratty it's been.  A slight two-day down move peters out before today's higher open is followed by continued upside action.  (Well, what do you expect, it was two whole days after all.)  Then the rally also fails, undoubtedly after many shorts have already thrown in the towel and new longs get burned trying to get aboard the new direction.  This is the second time in a week a triple-digit Dow move has faltered, so it's not exactly feeling like aberrant action.

Ours is not to reason why, though.  Ours is but to stick with our systems or die.  The Czar Chart is reflecting the schizophrenia.  For the second day in a row, it's urging longs in the mini S&Ps and Nasdaq, and a short in the mini Russell

On the other hand, maybe other trader rumblings will prove auspicious.  As ratty as the action has been, people have been acknowledging a pickup in volatility.  Three out of the last five S&P ranges have been in excess in of 10 points.  Perhaps this summer will be a contrast to the usual lethargy.  Who knows, we may even hear less index-sector whining.

The Biases for June 8

Hold S&P and Nasdaq longs, and hold Russell short.

The bottom two rows determine the signal.  Dynamic Day One trumps everythingâ€"you always follow it.  When it's neutral, the Monthly Perpetual provides the direction.  Click here for a more in-depth explanation of the rules.

DISCLAIMER: It should not be assumed that the methods, techniques, or indicators presented on in this column will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on this column are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The author, Tiger Shark Publishing LLC, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

Art Collins is the author of Market Beaters, a collection of interviews with renowned mechanical traders. He is currently working on a second volume. E-mail Art at artcollins@ameritech.net.