**These were my thoughts on the SPY ETF to subscribers in my Daily Trade Ideas which includes many, many more charts and setups**
“All that we are is the result of what we have thought” – Buddha
A solid day for many today with stocks and markets holding up well and basing a bit here which is very constructive.
It’s looking now more and more like last weeks flash drop was just that and a correction is in fact not coming.
That said though, until this debt ceiling is dealt with Late Wednesday night or early Thursday morning if all stays on track then it’s hard to say too much here.
If no deal comes then we should see a large drop so it’s still a very dangerous place here to be in the markets.
I can’t see me doing much other than holding onto our gold short until this news is out and maybe taking some smaller positions.
Earnings season is underway now and as always I avoid holding positions in leading companies over earnings unless I have a large cushion.
Fast moving high-beta stocks can move huge on earnings and that can be a great thing, but it can also hurt if it goes against you.
I go to a casino if I want to gamble.
Let’s take a look at the charts starting with the index charts and the SPY ETF which represents the S&P 500 to start.
If you’re up here in Canada I hope you had a great Thanksgiving long weekend.
SPY is moving well here but it’s still moving on relatively light volume.
The chart looks good here no doubt but that can change on a sour debt ceiling deal.
I’m not chasing here but if we aren’t going to correct, we will see a base and new buy point come and that will be where I look to enter, not now with so much uncertainty.
Enjoy your evening and Tuesday.