**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.**
“Because a thing seems difficult for you, do not think it impossible for anyone to accomplish.” Marcus Aurelius
A decent day for markets but I am still skeptical of a low being place.
While many people will call a low after the last two days, it is false from my learnings.
Stocks remain very dangerous but can be good for day-trading.
Small sizes and the ability to be very quick and use tight stops is key, otherwise sitting in cash is the thing to do for the moment.
It is earnings season and we always have to be aware of when a company reports and reduce or exit the position before they report but there is not much need to harp on about that yet since cash is king.
SPY has a 2 day bottom setup, at least that is what many would have you believe.
The proper reversal has to close on lows the first day and then close on highs the next with the bars being equal.
What we have was two closes in the upper half which tells me it’s a trap.
We may form a large range here before moving lower again from what I see tonight but that can change with tomorrows action.
Be very, VERY careful if you must trade or stay in cash.
I went for a splendid drive today on a low cloud warm fall day with leaves in full colour and then a nice walk along the calm bays of the island and just enjoyed life a bit for a few hours mid-day.
When it’s busy, I’m office locked but when markets are junk I try to get out for some exercise and relaxation.
Of course I’m listening to some business podcasts and keeping an eye on the markets and news with my iPhone all the while but getting out of the office is important when we can.
We are so blessed to live in this day and age with phones and internet capabilities so take advantage of it!