**These are just my thoughts on the SPY ETF in my Daily Trade Ideas which includes many, many more charts and setups**
“Lack of money is the root of all evil.” George Bernard Shaw
I’ve had a lot of questions about a real-time alert system and I’m considering setting up something if there is enough interest.
It won’t be as cheap as my Daily Trade Ideas since it would take me time in my already busy day.
If a real-time email alert type of system would be something you are interested please shoot me an email at firstname.lastname@example.org and I will see over the next few days if it’s a viable option.
It won’t be cheap, perhaps $500 for 3 or 6 months, but that $500 would be quickly made back within the first few trades.
I will limit members to 100 max so let me know as soon as you can if you are interested since it should fill up quite quickly.
As for the markets, today would have been a good one to have a real-time alert system setup.
Carl Icahn said he is weary of this market and a correction could be coming but I’ve heard him say that before in the recent past.
Markets did not like this and began to tank everywhere.
As much as it pained me, I was peeling off a lot of positions on that weakness since it’s hard to get gains back, but if we hold here, we can always buy it back.
I think it’s just silly that one simple sentence from him can move markets as it did but that’s how the cookie crumbles.
I actually didn’t get the news right away and saw things falling hard on heavy volume which is always a reason to be scaling down positions regardless of if it was just a thought from agreat investor.
It’s a sign of deeper weakness that we reacted so strongly to his words and as I talked about last week on the breakout on lower volume, lower volume breakouts tend to fail more often.
Stops are key and being able to identify and react to a marked change such as we saw today is critical.
Let’s begin with the index charts.
SPY reversed hard in the afternoon on a large increase in volume.
My first stop level was the $179.30 area but I checked out early with the strong volume coming in.
I’ve still got half my SPY long and am raising stops now to $178.90.
Really it’s not a bad thing to come off this $180 level at resistance and a few days or so, perhaps building a bull flag, would be super in my books.
I’ve highlighted the lower volume move here and said that raises the likelihood of it being a failed breakout but that didn’t mean we can’t make a little cash on the move and that’s what we did. Now we see if we do fail or not very soon.
Let’s see how it goes and mind our stops, some of which were hit today while others weren’t and I’ll get into those specifics for our stocks shortly.
Enjoy your evening and Tuesday.