Very Overbought With Little Room To Run

**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.**

“Good things come to people who wait, but better things come to those who go out and get them.” –Anonymous

We’re overbought now with not much more room on the upside before I’ll be getting into shorts.

I tried a small FB short today and took a little loss quickly as I tested the waters that are not yet ready.

SPY February 18, 2016So, we’ve got two scenarios here.

195 is resistance and a likely target for this strong move before we either back off and see weakness back to the 185 area, or we consolidate to work off this overbought condition.

Either scenario is fine by me and we should soon know.

We should either back off 195 strongly or hug the range between 195 and 192.50 to form a bull flag we can trade if this move is to go higher.

2016 remains very tricky and the trend is down so for now I give more weight to the larger move lower but that can change quickly.

Have a nice night.

Warren

Chopping Up My Mental Capital

**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.**

“The mind is everything. What you think you become.” – Buddha

The action remains very sloppy which points to lower prices but I’m having a hard time getting into shorts that allow me to stay in them.

I’m keeping stops quite tight in this uncertain market and that is forcing me to take several small losses these days which is frustrating.

All in all, I warn often about keeping your mental and real capital intact and this week is taking a toll on my mental capital.

I’ve tried several trades but have been stopped out for small losses or small gains with really only my GOOGL short from 793 working well.

I’m not really losing any money but being wrong hurts the head.

SPY February 5, 2016SPY remains between the 190 and 195 range area so I’m not planning on doing much until this breaks one way or another.

I’ve got to stop trying to trade and just focus on the daily charts, who are not showing me much at the moment.

Enjoy your evening and deserved weekend to come.

Warren

Is This Strength For Real?

**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.**

“Challenges are what make life interesting and overcoming them is what makes life meaningful.”   Joshua J. Marine

Some nice follow-through from FB Friday which is one of the few stocks to act strongly after earnings.

It’s end of the month rebalancing so we just have to see in the week and month ahead if this first attempt at strength is going to work, or going to be sold into.

Stocks remain very dangerous but are showing signs of perhaps a low being in on a more sustainable basis.

I’d love to see a longer base which would setup for a continuation of this bull market.

SPY February 1, 2016A nice breakout from SPY on a little increase in volume but I did not take the trade yet since TLT is also moving and I’ll talk about that later in this letter.

With it being the end of the month this may not be a real move but next week will tell that tale.

Enjoy your weekend.

Warren

Cray Cray

**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.**

“Challenges are what make life interesting and overcoming them is what makes life meaningful.”   Joshua J. Marine

Action continues to be very fickle and so far tonight we’ve got AMZN off large while V is up a tad and MSFT up a few dollars all on earnings and GOOGL is reacting poorly to the AMZN numbers to throw another wrench in the spokes.

It’s a coin flip market and I avoid those so cash is where I am although I did try one short today.

CRAY has been a bit cray cray lately so I shorted at 37.80 when it looked set to come back to earth but it didn’t so I took a small loss and got out of my short at 38.30.

No big deal and it was a very small trade.

Take a week off and come back and see how things are going then would be the best advice, otherwise if you can’t sit on your hands this market will chop up your account

It may seem like a weeks vacation somewhere is expensive but much more than that can be taken from your account in the same amount of time and you’re brain will be done, or you could come back from the beach refreshed and relaxed and ready.

SPY January 29, 2016SPY continues to chop between the 190 area and 187.50.

A break either way can be traded and I’ll likely try it but in small to medium size in this very poor market.

With leading stocks giving poor numbers or acting poor on good numbers this remains a very dangerous market to play around in.

Have a nice evening.

Warren

Great Setups For More Bounce

**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.**

“Obstacles are those frightful things you see when you take your eyes off your goal.” — Henry Ford

Markets were acting great again today and setting up to continue this bounce higher.

I locked in my AAPL gains today before numbers tonight and that was the right move.

I’ve still got the rest of my trades on but some are reporting earnings soon so am looking to lock in gains and look for shorts since it looks like this correction has not yet run its course.

Real-Time members get alerts instantly when I make a move and any thoughts that I may have about the markets during the day.

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SPY January 27, 2016SPY looks ready to go for the next leg of this bounce now above 190 so we have 195 then perhaps the 200 area to look for next where I’ll be looking to reduce or lock in all gains.

I’ve still got 10% into SPY at 185.77 and I’ll move stops up to the 189.30 and 188.80 areas now.

I usually try to use stops on a closing basis or nearer the end of the day unless there area major moves going on since the closing price is the most important of the day.

Enjoy your evening.

Warren

The Bounce Is Developing Nicely

**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.**

“Keep away from people who try to belittle your ambitions. Small people always do that, but the really great makes you feel that you, too, can become great.” – Mark Twain

Good action for stocks as we continue to look for higher prices into about mid-week if all goes well.

We’re back to neutral in terms of overbought and oversold so we have more to run in this bounce.

January 25, 2015SPY is breaking out nicely here with resistance levels overhead at 195, 197.50 then 200 and I’m looking at 197.50 and 200 as levels to lock in gains around mid-week I’m expected.

I’ve still got 10% into SPY at 185.77 and I’ll move stops up to the 189.70 and 188.80 areas now.

Enjoy the rest of your weekend and some great football today.

Warren

Stocks Start To Follow-Through Higher

**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.**

“I am not a product of my circumstances. I am a product of my decisions.” – Stephen Covey

It was strange to wake up to no large gap this am for once but it was a good sign and stocks acted well today and are still telling me we have more of a bounce to come.

I bought a few more positions today like LNKD FB and ABBV so let’s see how they go.

SPY January 22, 2016SPY needs to clear 190 as the next hurdle but a few heavy hitters reporting tonight may weight down this attempt at strength but maybe not.

All we can do is see how things are looking in the morning.

We’re working off the extremely oversold levels we just had but we have a ways to go before we are back to a neutral reading, and if all goes well, we will see an overbought reading before I lock in gains!

I’ve still got 10% into SPY at 195.77 so I can look to cost for stops now.

Enjoy your evening.

Warren