Weak Markets Give Strong Rallies But They Don’t Last

**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.**

“Confine yourself to the present.”  Marcus Aurelius

A strong Friday to be sure but weak markets do tend to give sharp strong but very short-lived rallies.

I still do not see this as being a low but that can change.

Most stock charts are still a mess so cash remains king.

SPY October 20, 2014SPY had a huge day but did gap higher and I was in no mood to take a trade late Thursday and risk it.

I do take trades at the end of the day once the daily bar is near complete, but only in select situations and I have not seen that situation appear yet.

A move above the 200 day and 190 area with volume and on a closing basis would be good and I may reconsider my stance then but as I said, so many charts are very broken and need time to give us safer entries.

Enjoy your weekend.

Warren

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