**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.**
“Trading Stocks is simple mathematics2+2= 4 but our greed makes it 5 and our panic makes it 3.” Feroz Ahmed Khan
A great Friday with China’s rate cut giving us a large gap open which did fade to fill the gap before moving higher a bit again.
All in all, a great breakout with, finally, increasing volume.
As I’ve been saying, there is lots of cash sitting, just waiting for an excuse to be put to work and we may have that excuse now.
Although we could us a correction, markets can continue to rise no matter what you or I or anyone else thinks or says.
I try not to listen to others, nor myself, and listen to the market and action alone although
I’m not, nor will I ever be, perfect in that regard.
I’m only human after-all and so many variable effect our emotions and actions but that’s why I have trading rules which help in that regard.
This could be the break we need for a nice run now but if we do move back under 206 then I’ll be raising cash and looking for a small correction perhaps even back to the 200 level.
Have a great weekend.