Are Lows In Already?

**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.**

“A person who never made a mistake never tried anything new.” Albert Einstein

A solid Friday that showed potential for a low being in now.

Thursdays action told me to get long some SPY so myself and real-time subscribers did and those call payed off very well having bought them at $0.50 an sold them in two tranches Friday at $1.55 and $1.68.

Not a bad quick trade, but not major either.

Let’s move right into the charts this weekend.

SPY October 6, 2014A solid Friday as the chart suggested we would have.

Sometimes late day buys are great once the daily bar is almost completed.

Many times we have done very well in short order on such trades.

SPY ran right into resistance at the 50 day as was expected and now we see.

Ideally, we will put in a small sideways channel here for 3 to 5 days and then break above the 50 and 21 day averages and then onto new all-time highs right on schedule with seasonality and on track for usual length of corrections.

Have a lovely weekend.

Warren

Oil Stocks May Have Bottomed

**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.**

“A man should look for what is, and not for what he thinks should be.”  Albert Einstein

A choppy day that did show some potential lows but I do need to see higher closes Friday to confirm these potential lows.

Oil stocks are the ones I’m mostly talking about but let’s see how Friday acts before I get too carried away talking about lows in place.

I did take a small options trade in SPY near the end of the day that will pay off large if we bounce well Friday.

SPY October 3, 2014SPY put in a potential low bar but we do need a higher close tomorrow above the 100 day average to confirm this.

We could move up to the 197 area tomorrow which would be a large payoff in the options I bought today.

Let’s see how it goes.

Enjoy your evening and be careful in this market until we get some better setups.

Warren