Markets Look To Be In A Consolidation Phase

**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.**

“If you want to achieve greatness stop asking for permission.”  Anonymous

We started off with some weakness, then saw strength, then weakness, where real-time members and I covered our FB and GOOGL shorts for very nice quick gains.

Now, we see if a bounce can develop or if we just setup for lower again but I’m in swing trading, or shorter term trading, mode since that’s what the market is giving us right now.

SPY February 10, 2016SPY needs to move above 187.50 and then we may get a nice bounce to 192.50.

The more this year plays out the more it looks like we may be in for a deeper correction but it won’t be straight down.

With some fresh snow around finally, and after booking some nice gains on the short side

I’m going to take tomorrow off and do some skiing so there will not be a report or blog tomorrow evening.

I’ll be looking for some swing long trades likely over the next few days, or maybe, we just setup here for another leg lower as we work off the near oversold condition we have now.

Either way, sometimes after some nice gains, I like to reward myself with a fun day off, isn’t that why we do this to begin with?

Enjoy your evening.

Warren

Swing Lows

**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.**

“Courage is never to let your actions be influenced by your fears.” Arthur Koestler

We kicked the week off with a great gap lower and then chopped around with a downward bias until markets and many stocks moved up strongly into the close.

Our shorts in FB and GOOGL are still working well but we are approaching oversold levels so I do expect to lock in gains in those short positions in the next day or two and then look to ride the swing trade higher most likely.

SPY February 9, 2016SPY is holding the 185 level well and closed near the highs of the day which is positive but a higher close tomorrow would be even more positive and likely be a swing low we can trade.

Have a great night.

Warren

Downtrend Resumes

**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.**

“We become what we think about.” – Earl Nightingale

We saw some nice weakness Friday after mixed action all week and while I booked several small losses during the weak my GOOGL and FB shorts are paying for those losses and more.

I usually have a much better win/loss ratio than this past week but still, subscribers and I are making good money with only a few winners.

It just goes to show the importance of keeping losses small.

It’s fine to be wrong, but it’s is not fine to stay wrong.

SPY February 7, 2016SPY is trying to break once again by breaking below the uptrend channel, which is generally a bearish pattern.

Now I’m looking for a release below 187.50 which would target the next support area at 181.

Have a wonderful weekend.

Warren

Chopping Up My Mental Capital

**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.**

“The mind is everything. What you think you become.” – Buddha

The action remains very sloppy which points to lower prices but I’m having a hard time getting into shorts that allow me to stay in them.

I’m keeping stops quite tight in this uncertain market and that is forcing me to take several small losses these days which is frustrating.

All in all, I warn often about keeping your mental and real capital intact and this week is taking a toll on my mental capital.

I’ve tried several trades but have been stopped out for small losses or small gains with really only my GOOGL short from 793 working well.

I’m not really losing any money but being wrong hurts the head.

SPY February 5, 2016SPY remains between the 190 and 195 range area so I’m not planning on doing much until this breaks one way or another.

I’ve got to stop trying to trade and just focus on the daily charts, who are not showing me much at the moment.

Enjoy your evening and deserved weekend to come.

Warren

“Ummm, I’m not sure?”

**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.**

“I have never in my life learned anything from any man who agreed with me.” – Dudley Field Malone

We started out with some strength and then the weakness that was showing really took hold and we saw some great action.

I was short coming into today and shorted a few more into some strength and that strength was textbook, running right into resistance areas and then fading.

I love it when the action works as it is supposed to, but alas, then we ripped higher out of the blue into the close.

I was all in short by mid-afternoon but had to cover a few into the close unfortunately.

I really don’t know what to say.

We’re weak, but bouncing, so I’ll make sure to obey my stops and keep any losses small if they come, and try to let winners ride.

As a perennial favorite, Downtown Josh Brown, tweeted late today; “Hi honey, how was your day?”

“Ummm, I’m not sure?”

That sums up today perfectly so let’s see what the charts are saying.

SPY February 4, 2016SPY snapped back from a perfectly acting weak market today to close above the 190 area and the uptrend line so I had to cover my short.

Who the hell knows what’s going to happen.

We show weakness, then strength, the who knows, so I may well be back to cash again shortly.

When I get signals, I’ll get into long or short positions quickly but if the positions don’t work right away, I’m out and limit losses.

I’ve taken a few smaller losses yesterday and today and may take more but then I’ve got GOOGL short from 793 which covers all those small losses and then some.

No fun being wrong but much worse staying wrong.

Anyhow, I was short with a 15% weighting in SPY from 189.90 and covered late today at 191.15.

It happens.

Enjoy your evening, I’m off for a long walk with beautiful snow falling.

Warren

Markets Changed Their Tunes Today

**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.**

“We must use time wisely and forever realize that the time is always ripe to do right.”  Nelson Mandela

We’re working off overbought levels well now but we do appear to be headed lower in the very near future now.

Seeing banks fall today and TLT rock is part of the recipe for lower markets and stocks.

I’m short SPY and GOOGL now and looking for more with some nice short sale levels in tonights letter for full subscribers.

SPY February 3, 2016I went long SPY twice today and stopped out for small losses and then I went short as I sold the last go round.

I’ve got a 15% weighting short from 189.90 now and my stops are right around the 190 area in case we do bounce but it’s looking weak and tonights earnings numbers are likely to weigh heavy on the SPY by the time we open up again in the morning.

I also tried to short some BIDU but took a $1 loss there per share but I ended up being right, but not willing to give it much room to work.

BIDU does look like a good short perhaps tomorrow and I’ll get into that later.

I also tried to short FB and took a $0.50 loss per share there so no big deal and it may break soon.

It’s still very choppy with tons of poor action and that usually points to lower prices so I am now actively looking to get short in a good sized way.

Enjoy your evening and start looking to short stocks.

Warren

Constructively Basing

**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.**

“The difference between successful people and very successful people is that very successful people say no to almost everything. You’ve gotta keep control of your time, and you can’t unless you say no. You can’t let people set your agenda in life.” – Warren Buffett

Some solid action today that is building out charts to have a more constructive look by the day now.

I don’t know when, but we do look to be setting up for higher, perhaps near weeks end, and perhaps this isn’t going to turn into a bear market after-all.

SPY February 2, 2016SPY is basing well between 195 and 190 with a break above 195 the buy level now.

Enjoy your evening.

Warren