Bad Intra-Day Action Tells The Tale

**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.**

“Life is simple but if you don’t put anything into it, you won’t get anything out of it.”  Auliq Ice

For you real-time trading members, please, don’t worry, trades will come but I am not rushing.

It is always better to wait for a good trade rather than get chopped up mentally as well as see your capital eroded.

Things were looking great and ready to move higher but this week, the tone has changed so please, trust me when I say, patience will pay.

SPY October 22, 2015Hard to believe SPY is holding up so well with many stocks acting poorly and several really getting hit hard but so far, it’s holding up well.

A move above the 200 day at 204.30 is a buy level while today’s low near 201.60 can be a short level.

Let’s check into 15 minute chart which is not acting great at all.

15 Min SPY October 22, 2015I have labelled in the chart what I saw during today, and I see these patterns in similar charts everyday.

When bullish and bearish patterns do not work, I go to cash.

I’m sure you’re saying, just do the opposite of what the pattern is saying, but I don’t work like that.

I prefer to trade in a healthy market and this one is acting sick.

That said, things can change quickly and looking at 15 minute or other short timeframe charts helps me see and determine a stock, or markets health.

Once I see things acting properly, I will be in stocks but I am in no rush since acting prematurely almost always loses me money.

Have a nice evening.

Warren

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