Reversing Off Range

**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.**

“If you can find a path with no obstacles, it probably doesn’t lead anywhere.” — Frank A. Clark

A relatively quite day until the last half hour when markets and stocks finally began to show some weakness

With the amazing strength we saw early this week some retracement is due and still charts do look for lower over the next couple weeks or so as the next major move.

I’m still playing very small in this market but we did try some PCLN and GOOGL shorts today using options and I was stopped out for about $400 loss on PCLN but we are up nearly $1100 in GOOGL so I sold about half my position and am letting the rest ride overnight.

Trading is always about making more than you lose and everyone loses sometimes.

SPY February 5, 2015SPY is rolling over from the top end of this triangle.

Looks like we should move down to the 200 area now before perhaps a break lower towards 190.

I still have some weekly SPY puts from Monday that are well underwater but they could come back and be profitable shortly.

Still, it embarrassing how I totally ignored my stop levels in the SPY trade after harping on about tight stops.

I’m not perfect unfortunately but it isn’t often this error happens.


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