**These were my thoughts on the SPY ETF to subscribers in my Daily Trade Ideas which includes many, many more charts and setups**
“The only thing to do when a person is wrong is to be right, by ceasing to be wrong. Cut your losses quickly, without hesitation. Don’t waste time. When a stock moves below a mental-stop, sell it immediately.” Jesse Livermore
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You’ll soon see, I’m not one to issue buy points nightly since I take the whole spectrum into consideration and only give buy points when they have a high likelihood of working.
It looks like we’re going to get a debt ceiling extension sometime tonight which is a good thing regardless.
It should soon tell us if we are going to correct or base a bit and then move higher.
The fact that news of a deal coming tonight for sure didn’t see markets rise, but nor did they fall.
We are still in a bit of a no mans land here in my view since we could gap huge either way overnight Wednesday.
I know many of you are feeling like you’re missing out here with some really nice moves lately but don’t worry. If these moves are for real we will have plenty of chances to buy them soon enough, but if the moves are not for real we can see these gains wiped out in a single day as we did last week.
Let’s being with a look at the index charts before we dive into some stocks.
SPY rocketed right at the open today and I almost always avoid buying during the first 30 to 60 minutes of the day and today was no exception.
The chart looks strong here and today we saw nice volume push it higher which is a nice change to the light volume last Friday and Monday while the higher volume Tuesday was on weakness.
It’s been a bit messy here lately but hopefully we will get a clearer picture over the next couple days or sooner.
Avoiding uncertain times will pay off big-time I promise. Patience does pay.
I’d consider getting long the SPY ETF on a test of the $172.30 area here using stops $0.10 or so lower.
I’d use small to medium size at most in this market.
Have a great evening and Thursday.