**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.**
“Action is the real measure of intelligence.” — Napoleon Hill
We went to an all cash position today after doing much selling the past two days unfortunately but that’s the way the cookie crumbles.
Things looked and acted so great last week but it didn’t last long.
I wouldn’t change a thing I did since once things begin to behave well and I notice, I go heavy but I’m always ready to lock in gains or take losses while they remain small and that is what I did yesterday and today.
We avoided any real damage and booked some really nice gains in a few.
We can’t always have our cake and eat it too and surviving until we can, is a major key to trading.
Charts are sloppy now and markets seem to want lower but with several large earnings coming out tomorrow, both before and after the bell, like BABA BIIB GOOGL ALXN AMZN and CELG this could all change to positive again.
The thing is, as we saw with NFLX earnings and AAPL earnings now which were great, the effect won’t last long most likely.
That just means, we can make great money, but we do have to do so quickly and not get too greedy.
We have to identify support and resistance levels on the 15, 30 and 60 minute charts and use them to our advantage and be quick.
I’d love to buy and hold as much as Warren Buffet but this market won’t let me so I won’t.
As for the new round of real-time service, I’ve had the flu for nearly a week now and I’ve not really had any energy to devote to getting things ready so I’ll likely continue this term of it for current subscribers for an extra week and begin the new term a week late.
More info once I regain my strength, hopefully tomorrow…
I’m not old by any-means but man its zapped me.
FB just beat on earnings but isn’t doing anything special here yet.
SPY very well could be on the cusp of breaking this large head and shoulders pattern which would target a move down to 192.50 or so.
We are right here at the breakdown level and a move under 200 is a short signal but as I said above, with many big hitters reporting over the next day or two, we may bounce for a while yet if numbers are good as I expect.
It’s a bit of a jumble right now and that is rarely a good thing.
Have a restful evening.