**These are just my thoughts on the SPY ETF in my Daily Trade Ideas which includes many, many more charts and setups**
Sometimes the biggest problem is in your head. You’ve got to believe. -Jack Nicklaus
Please note I may have to take off early tomorrow so there may be no letter Thursday evening.
Markets were choppy most of the day until we saw some strength later in the day which moved us back above key levels.
Some stocks are doing well, especially the cheaper biotech ones and that is great news since so many people like cheap stocks!
We are seeing a new group of leaders emerge and in time they will be the high flying expensive stocks but for now, they are very cheap.
Let’s begin as always with the index charts whom are telling us this correction may be over already.
2013 has been the year of shallow corrections and this one looks to be no exception.
SPY was weak and moved under the 21 day average as was expected.
We came back above it on good volume and I was a buyer right there as I talked about would be a buy in last nights letter.
Great stuff and stops are at cost at the 21 day at $178.89 or so.
We should know tomorrow id the low is indeed in or not.
Have and enjoyable evening and Thursday.
**These were my thoughts on the SPY ETF to subscribers over the weekend in my Daily Trade Ideas which includes many, many more charts and setups”
We saw the $157.50 level hit to a tee Friday. It was only 3 pennies off before we saw a reversal.
Absolutely fantastic action in my books.
Now we see if we hold here.
Let’s dive right into the charts.
The SPY hit the $157.50 level I’ve been talking about perfectly today and bounced well off it. This could be a temporary low here and a move to the 50 day at $161.20 then possibly to $162.50 looks likely.
If you got the bounce at the level I talked about at $157.50 congrats.
Great action we’re seeing here.
Here is a 15 minute chart of FB and my reasoning for buying a positions here now.
You can see the early morning breakout at the $28 level, which I missed, with strong volume.
The next area to look at is the $28.50 level which was beat before we saw a run to more significant resistance at $28.75.
You can see the volume on up bars is much higher than the volume on down bars. That equals buyer strength so I want to be on the buy side.
I will add to my position on a move above $28.75 as long as volume remains strong.
If volume comes in on the sell side and breaks $28.50 with authority I will sell right away and minimize losses.
I can always try another trade at $28 which would likely be hit in that event.
Keep stops tight, watch the action and buy right.
Now let’s see if I’m right!