As we know, the Fed spoke yesterday and spooked the markets. Well, today was just a continuation of that spooking. Down we went loosing more than 350 points on the day. Unreal! Hopefully you guys had some short positions to take advantage of today’s action. Unfortunately for me, I was not as lucky as I would have liked to have been, but I’ll get to that later.
Let’s take a look at where the SPY ended up today. We are well below the triangle that was forming for the last month or so. In addition, oscillators are turning back over bearish and ADX just ticked upward, indicating that it’s starting to like this new bearish move. All that being said, we could always fail the bearish move and bounce tomorrow (although I wouldn’t bet on it). Lastly, volume was large today, also helping confirm the bearish move. Personally, I think we wait for 15min confirmation tomorrow for the continued bearish move and then start to get into some short positions. The next point of resistance is the 100 SMA which is about 2 points away from where we currently sit. This gives us some good opportunity to make some trades before a decision is made on continuing lower or bouncing from there.
REVIEW OF YESTERDAY’S PICKS
SLV: We missed the majority of the move, unfortunately, but we could have still gotten some profits for about a 0.20 move.
NFLX: No trigger
TGT: No trigger
BBY: No Trigger (just barely)
DDD: If you get triggered in, you made about 0.61 cents
AEO: wasn’t worth getting in.
HD: you would have been triggered in and made about 0.85 cents.
JPM: you would have been triggered in and made about 12 cents. Not worth this one.
HES: You would have been triggered in at the end of the day.
LULU: No trade
AEP: You would have been triggered in and made about 0.54 cents.
Overall, following this predictions would have worked out rather well.
REAL ACCOUNT ACTIVITY:
$JPM: HOLDING (Down 32%) Let’s start with the pain. As mentioned yesterday, I got into this trade very foolishly. Well I’ve probably held on foolishly as well hoping it would go up. I put my stop below the wick from 6/6. My stop is at 52.20. I fully expect to get stopped out tomorrow for a painful loss and lesson learned. Not much else to say about this speculation/gamble trade.
$FCX: CLOSED (UP 26%) Finally, this trade pays off, and handsomely! I was holding more contracts than the JPM trade so my account ended up closing in the green today. If I had never taken the JPM trade, I’d be sitting pretty, but such is life.
Stay tuned for entries and predictions for tomorrow!