Better Action But Still Slow Summer Trading

**These are my thoughts on the SPY ETF in my Daily Trade Ideas which includes many, many more charts and setups.  Subscribe to my nightly Daily Trade Ideas on the right to see the rest of this letter.**

“The best traders have no ego. You have to swallow your pride and get out of the losses.” – Tom Baldwin

Much better action than we seen for a long time today with stocks acting good, especially those who broke out.

We’ve seen so many breakout failures and poor action lately but this Tuesday saw that change, at least for a while.

It doesn’t mean we are out of the woods, but it does mean I am not 100% cash anymore.

I’m still using relatively small positions, just dipping my toes in the water but so far the water feels good and safer.

Things did slow in the afternoon a bit but all in all it was a much better day than we’ve been seeing of late.

Let’s kick it off with the index charts before we move into specific stocks for subscribers.

SPY July 23, 2014SPY tried to go and looked great but did reverse today while some stocks held up well.

Expect more chop and sideways action with the exception of select stocks making this still a stocks pickers market.

CMG did great on earnings while NFLX didn’t.

It remains the earnings season of non-action.

I did try some SPY calls but got out at cost once the action stalled out.  No need to take risk with options in this market yet.

Have a great summer night.

Warren

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