Sold It All

**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 Trade Ideas to see the rest of this letter.**

“The first and the best victory is to conquer self.” – Plato 

Well that wasn’t too fun a day, but not too bad either if you cashed out, as I did.

Unless you are shorting stocks, it’s times like these that you should take off and enjoy some life and spend some of the money we’ve just made.

Sadly, this is about a month early for my next planned trip on the bike.

I did take a short in ALGN today and I may try a few more.

GS and several other leaders are saying we need a nice long consolidation now,  likely 6 to 8 weeks.

Notice, I say consolidation, not correction or bear market.

Seeing the S&P pullback 5% or so and forming a new pattern would be ideal and is very likely as we remain a ways off from the blowoff top in this bull market in my view.

No go for SPY falling on heavy volume.

It’s all good though.

Let’s see where we find support but this may be a nice break in the strong bull market we’re in the midst of.

I’d look for a spike to the 100 day average at 225 or so as a potential low, but it doesn’t matter what I “think”.

I’ll be watching and looking for signs of lows and that’s all I can really do.

See the rest of this letter and get a few potential short positions that may hit.

Enjoy your evening.

Warren

SPY Thoughts September 13

**These were my thoughts on the SPY ETF to subscribers in my Daily Trade Ideas which includes many, many more charts and setups**

Deal with the world the way it is, not the way you wish it was. – John Chambers

A pretty quiet day in the markets as we consolidate some recent gains and setup for higher prices again from what I can see so far.

Gold and silver were smashed and moved lower in overnight action leaving any would be shorts in North America out of the trade.

They broke their small head and shoulders patterns I talked about in my weekend letter and are looking for lower still and I’ll cover that at the end of this letter as always.

Let’s take a look at our positions and see which ones have stopped me out partially or all and talk about how I’m managing them.

SPY September 13, 2013

The SPY ETF is resting well here after a solid run.  It can correct here to the $167.50 area.

Not much to say about the S&P 500 here tonight as we setup for likely higher prices in a week or two.  A breakout above $170 could be bought here or a fall below $167.50 can be shorted also.

I like to do some day-trading in these types of market but so far tight ranges are not conducive to this.

Great Gains Need to Consolidate

**This mornings SPX post to subscribers.  Join today for this and many more charts delivered to you every morning.**

The S&P 500 is resting here below it’s 50 day average along with the 61% Fibonacci level at 1,425.

While we did breakout Thursday above the 100 day with a nice little consolidation area I’d still like to see a little more rest here before we move higher but it’s not up to me.

I’ll be a buyer of some SPY calls on a test of support at the 100 day or on a move above the 50 day but I’ll be watching how it acts at the 1,425 Fibonacci level.