**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.**
“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure.” Nelson Mandela
A poor start to the week that saw many of the stronger stocks of late take it on the chin and I did a ton of selling this afternoon once it became apparent bounces were not on the horizon.
So, we’re back to a tricky type of market unfortunately.
That said, we may be able to get some of those stocks back cheap over the next few days if they can hold support areas.
Earnings are really heating up now and will continue to be heavy for the next couple of weeks for many of the stocks I was holding and I generally hesitate to hold over earnings anyhow so I may be in a heavy cash position for the most part until I see the reactions to earnings.
So now we’re back in the large triangle with 211 the upside resistance area and 207 or so support and that’s just the way it is, again.
Just when things were acting great, we’re back to a tricky market.
There isn’t much I can do about this or any other market so I just react and so far the right move was to raise lots of cash and I did.
I’m only holding SHAK from the 50 level and stops are now tight so chances are I’ll be all in cash sometime Tuesday.
We’ve got to roll with the punches.
I did try a small position today in SPY weekly calls on the spike low but it never got any traction and then began to roll over so I sold out for a ten cent loss per contract.
It could have been a great trade and I’ll take a small loss anytime to try for such large potential gains.
Enjoy your evening.