**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.**
“I have learned through the years that after a good run of profits in the markets, it`s very important to take a few days off as a reward. The natural tendency is to keep pushing until the streak ends. But experience has taught me that a rest in the middle of the streak can often extend it.”- Martin Schwartz, in Pit Bull
An interesting day as we begin to roll over now, being led by the Nasdaq and IWM.
Some stocks were hit pretty hard today while some did very well.
It’s a time to be pretty heavy in cash in my view except for select stocks who may do well but, in a weaker market we can’t expect too much from stocks so I may be raising my cash levels very soon.
I have some NPSP, but only a 3% weighting, and it was halted on pending news all of Friday.
The news ended up being very good but the stock was hit hard on a gap open lower, ending down some 16%.
It is no fun but it can happen, especially in this biotech and pharma sector since so much depends on news events.
I’ve warned about this in the past and will many times in the future as this bull market rolls on.
I’ve got to take the bad with the good and so far, today was tough in terms of NPSP being off some 16% for the day but I’ll get more into that later on in tonights letter.
SPY is close to breaking this small head and shoulders top and I can’t believe it didn’t with the weakness in QQQ and IWM today.
Expect some more weakness for a few more weeks or so on balance.
Have a lovely evening.