**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.**
“When you want to test the depths of a stream, don’t use both feet.” – Chinese Proverb
A great quote for this market that is still suspect.
Small positions and tight stops are the equivalent of testing the market with one foot and that remains my strategy as we continue to chop around a bit until the fall.
That said, I’m seeing many leading stocks do just that, lead.
While markets still are nothing to write home about, I’m seeing leading stocks act much better and many are now breaking out or are very close to doing so.
I’m still using relatively small positions to really gauge the market and so far so good.
One of the trades, all are reserved for subscribers, was a morning buy in ITMN which saw a takeover bid later in the day. Sometimes you just get lucky and there is nothing wrong with that.
It was pure luck, although the chart looked great and that is the real reason I bought it.
We could easily push to 198 quickly so let’s see how that goes.
Enjoy this wonderful summer evening.