Overnight Gaps Are No Good

**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.**

“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.”  George Soros

A super choppy day with no direction at all after the big opening gap lower Tuesday which was followed by a bit more downside but it seems we are back to the action taking place overnight which means it’s hard to take advantage of it.

We are still on track to put in a new low over the next week or so and then we can look for entries but until then, I’ll stay out of stocks still.

We’ve been mostly in cash except a few trades here and there since the spring and that’s been a great relaxing time but work is just over the horizon once we get a low.

We’ve done pretty well this year so far, doubly so since we avoided all this chop, and we are going to end the year in strong form once trends emerge.

It is near time that our patience will have payed off.

SPY September 24, 2015SPY is breaking the wedges as expected but it did do in overnight action.

It seems when we are seeing the action happen overnight so I’m not at all keen on shorting and haven’t been all summer.

Cash is my place to be but we are getting closer to this years low.

Patience will pay.

Have a wonderful evening.

Warren

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