**These were my thoughts on the SPY ETF to subscribers in my Daily Trade Ideas which includes many, many more charts and setups**
“Do not fear to be eccentric in opinion, for every opinion now accepted was once eccentric.” Bertrand Russell
Things were holding up well today until news that talks on the debt ceiling broke down for a time.
A ratings agency also put the US AAA rating on watch over the same issue.
These news events turned markets lower off their highs
This remains a dangerous market to be in on either side until we get more of a trend or pattern develop.
Until then saving cash for the next good play is my strategy.
I talk a lot about the merits of sitting in cash and doing no trading often.
Saving all your trading capital and mental capital instead of being chopped up is so important and such a true skill.
Enjoy life and study up so the next good round of trading goes that much smoother.
I have and still do suggest going back into my archives and studying the July 2013 move.
Study the setups we traded and how we handled the trades. It was a great month and one that could be put in textbooks.
I’m still short gold with stops at cost but that’s all I’m doing and it’s a small position.
The SPY tried to breakout Monday but failed now today.
As I’ve said, I’m not interested in a market which can move up or down fast once this debt ceiling is resolved.
Also of key note is that volume was high today in the indexes. It’s been relatively weak on advances recently but strong on weakness. That tells me we are right to sit and watch.
Until it’s done I’ll be a watcher and not a participant.
I’m trying to simplify this, perhaps I’m keeping it a bit too simple but why complicate things?
Have a great evening and Wednesday.