**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.
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.