**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.**
“There will come a time when you believe everything is finished. That will be the beginning.” Louis L’Amour
The week was short, but wild.
We saw tech get hit hard, then rebound, bios and pharma looked great but failed and metals got hammered.
We should get some more clarity next week as traders return from a nice week off.
SPY bounced well off the 50 day average and closed above the 21 day average which is very positive action.
Accordingly, we should continue nicely higher right away, if we move back under the 242 area then chances are we move lower, below 240 to 238.
The Nasdaq still has a head and shoulders pattern but that may be cancelled out shortly if we get another strong day, so let’s wait and see.
Enjoy your weekend.
**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.**
“If you don’t have time to do it right, when will you have time to do it over?” John Wooden
A wild open lower like we’ve rarely seen that continued in one of the bloodiest days I can recall.
We did bounce very well into the close and may now have a low in place but the damage is severe at the moment.
I’m not super keen on jumping in right away but perhaps in a day or two once I see how the action plays out.
I did buy a small position in VSR today which is up nicely so far but risk is off on my book for the most part meaning very small positions if any at all but that can change quickly.
SPY bounced well but damage is severe and until we do form some sort of chart that points to higher and/or we move back above the 200 day average things can remain very ugly.
There are definitely times I will take trades late in the day or once things do begin to turn but for a true turn to come I need to see a follow through the next day and with such blood in the streets I am waiting this time.
I did consider some SPY calls later in the day but with volatility spiking large that made the options too expensive and risky for my taste.
We don’t have to catch every turn, rather the meat of the move although I’ve been known to hit tops and bottoms pretty closely sometimes.
With NFLX off some $120 on earnings tonight it shows just how dangerous this market is.
Be very careful and remember that cash is always a positions and at times like this it is the best position.
**These were my thoughts on the SPY ETF to subscribers in my Daily Trade Ideas which includes many, many more charts and setups**
A wild day indeed with markets really ending flat in the end. It’s an absolute goldmine for quick day-traders but you’ve got to be very quick.
We saw some major moves from MA and V as MA was up large on earnings then faded and was hit by a new fee or something. Both V and MA were smashed and some options that were selling for only $0.24 went to $24 in a heartbeat.
You can retire on that but even if you only had 10 contract you’d pocket a smooth 24k minus your $240 buy.
Wish I’d had it.
I haven’t traded AAPL much at all lately but today I tweeted my shorts and I took two of them nailing the top twice and the low twice….lucky today ;)
The S&P remains in it’s range and that pesky $169.15 or so area remains a major pivot area.
Let’s move right into the charts tonight.
SPY had a wild ride today with several entries for short-term trades. The $169.15 area remains a magnet but I won’t hold anything until we close out of this range one way or another on a closing basis.
Seeing the Nasdaq show a failed breakout today as it was trying to lead us higher isn’t great but until we break one way or the other we remain the same.
As I like to say, the range can be traded off until it can’t.