SPY Thoughts October 18

**These were my thoughts on the SPY ETF to subscribers in my Daily Trade Ideas which includes many, many more charts and setups**

You can do anything, but not everything.
—David Allen

First I have to apologize for my 3 errors last night.  It’s a rare thing for me to put the wrong numbers down but I did Wednesday evening three times unfortunately.

My mistakes were SPY where I said I’d take a long trade if it came back and tested $172.30 and then held that level.

I was obviously talking about $171.30 since it had not even hit $172.30 at the time.

I said the BYD buy point was $10.07.  That level has not been seen for a long time and the consolidation just under $14 meant the breakout level was $14.07, not $10.07.

The last error I made was NFLX where I said $319 was the buy point.  We are above that level already and the small consolidation just under $330 would have obviously meant $329 was the buy point, not $319.

I’m very happy to have not gotten any email about this as all you members obviously saw the patterns and figured it out.  Great job.

With the debt ceiling out of the way and the government doing whatever it is they do, it’s now safe to begin entering markets here using proper buy points of course.

We saw some great moves today and several of our buy points were triggered Thursday and we are getting into certain stocks as buy points are hit.

I picked up much more today than I’d planned as the action was good, for now.

As I suspected would happen, as usual, gold saw a big move overnight which gaped above my short level leaving me with a loss but since I had expected this type of action it was a small position so it’s not that big of a deal.

Let’s take a look at the index charts before we look at the positions I took  today and any others who are looking to breakout very soon.

SPY October 18, 2013

SPY moved back to under the $171.30 level very early in the day and as it moved back above that level I was piling in.

So far so good and my stops are now just below $173.

Volume wasn’t special overall but up volume was very nice and especially into the close as price spiked higher.

Have an awesome Friday and weekend ahead.

Warren

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