SPY Thoughts October 16

**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.

SPY October 16, 2013

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.

Warren

 

Another Christmas Bonus. CMG

CMGWe’re lucky enough to have bagged another winner recently.  CMG

Subscribers were alerted a few days prior to the breakout to keep an eye on the descending trend-line and that the breakout/buy point was the $270 area.

We were in right away and now we’re up about $20 from there in about a week.  That’s a good bonus when using options.

Now that we are at the 100 day moving average I’m watching the action for any signs of weakness.

So far it’s looking good as it’s slicing through the 100 day.

A couple new buy points are being triggered today and once again, my subscribers are winning.

Are you?

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.