Waiting For Setups

**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.**

“You have to be okay with wins and losses. You can’t just be looking for the wins and, when the losses happen, you can’t buy more and more because you’re sure it’s going to bounce. We call that revenge trading.” Josh Brolin

A strong start to Friday but then a very weak close which tells me I was right to go back to cash as markets are too choppy to really bother with right now.

They will give us some nice setups in a couple weeks or so, or perhaps a nice dip buy.

october-17-2016SPY moved well back above the 100 day average but then closed right on it with some heavy trading into the close.

Day-trading can be fine at the moment but there is no trend right now and charts are a bit of a mess.

That said, keeping an eye on stocks who hold up best or even continue higher during market volatility can often tell you which stocks and sectors will lead in the next move higher.

Enjoy the rest of your weekend.

Warren

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