Oversold+ No Bounce=Cash

**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.**

“An obstacle is often a stepping stone.” – Prescott

A tough tough day that once again began with a nice gap higher but was followed with weakness, but this time, there was no bounce.

We need a bounce, there is no doubt, but markets can remain irrational longer than you or I can remain solvent, so I went back to a full cash position later in the day once it became apparent we were not going to see strength return.

It’s too late to short and a bounce isn’t coming so there is nothing to do which is fine since

I’m feeling under the weather tonight so instead of doing hours of my normal homework/chart work, I’ll enjoy the split pea soup I made today and watch some How To Make a Murderer.

I talked about how things were not acting great the past few nights but I was being a bit stubborn and it cost me a bit, but not too much in terms of losses and we will get those back soon enough.

SPY January 14, 2016Nasty stuff from SPY who’s now heading towards the 187.50 and 185 support areas, where we may bounce but who the hell knows the way things have been going.

I had 10% from 194.60 and had to check out for a loss today at 189.40 so not a bit deal in the scheme of things.

Have a nice evening.

Warren

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