Good evening everyone. Let me start by saying that when I checked the market at lunch time, I almost fell out of my chair when I saw we had faded the gap. At that point I thought we were going to move higher, but the bullish recovery was only to be short lived. Once again, I wish I had taken my profits in HD. Now at the end of the day I am down slightly. More lessons learned. In an uncertain market, take profits and wait for a better opportunity to enter. Now I need to hope for a bullish day tomorrow, but with the way Asian and Australian markets are acting right now, that doesn’t look like a good bet.
While I’m still neutral on the market, my tendency is to lean more bearish. I think we will retest the 50 MA and the 161.20 level on the SPY. From there we will either confirm the bearish move or bounce and come back up to retest recent all time highs.
See SPY chart below. Notice we are approaching some strong support lines (50 MA and 161.20 as mentioned before, but we also have the short term downward trend line and we have the long/intermediate upward trend line.
Going over yesterday’s picks: FSLR never triggered on 15min, WYNN never triggered on 15min, SLV did not close below my entry and DNKN you could have made $0.30 per share or you could have done well with options. Despite the uncertain market, DNKN could keep moving upward with MACD crossed, and Stochs/RSI bullish.