SPY Snaps Back To Close Above 190 Area
Warren Bevan | Feb 04, 2016 04:03AM ET
**These are my thoughts on the N:SPY ETF in my Daily Trade Ideas which includes many, many more charts and setups.**
“I have never in my life learned anything from any man who agreed with me.”
– Dudley Field Malone
We started out with some strength and then the weakness that was showing really took hold and we saw some great action.
I was short coming into today and shorted a few more into some strength and that strength was textbook, running right into resistance areas and then fading.
I love it when the action works as it is supposed to, but alas, then we ripped higher out of the blue into the close.
I was all in short by mid-afternoon but had to cover a few into the close unfortunately.
I really don’t know what to say.
We’re weak, but bouncing, so I’ll make sure to obey my stops and keep any losses small if they come, and try to let winners ride.
As a perennial favorite, Downtown Josh Brown, tweeted late today; “Hi honey, how was your day?”
“Ummm, I’m not sure?”
That sums up today perfectly so let’s see what the charts are saying.
SPY snapped back from a perfectly acting weak market today to close above the 190 area and the uptrend line so I had to cover my short.
Who the hell knows what’s going to happen.
We show weakness, then strength, the who knows, so I may well be back to cash again shortly.
When I get signals, I’ll get into long or short positions quickly but if the positions don’t work right away, I’m out and limit losses.
I’ve taken a few smaller losses yesterday and today and may take more but then I’ve got Alphabet Inc (O:GOOGL) short from 793 which covers all those small losses and then some.
No fun being wrong but much worse staying wrong.
Anyhow, I was short with a 15% weighting in SPY from 189.90 and covered late today at 191.15.
It happens.
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