It is beginning to look like the market won't really break significantly in any one direction today, so I am looking to do some range plays. The range suggests going long between $109 and $109.30 and Shorting between $110 and $110.30. I had a limit to buy at $109.01... SPY moved as low as $109.02, missed it by .1c. Too bad, that would have been a nice take. I did buy half a position at $109.29, so at least I got a little piece of the action. SPY is currently moving up, lets see if we can get past two minor resistance levels that intersect at $109.60. If we can move past that and the 50 Day Moving Average, we'll then just need to get past the 100 day moving average. If that happens we will cross $110 and see the top of the range I mentioned above. FYI, I placed my Stop at $109.21.
If SPY does move back down and moves below $109, I will look to Short.
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The market is chopping all over the place this morning. I just got stopped out of my position but, that is probably my own fault. I was using a down trend line as support, and the support moved below my original stop. If you use a down trend line as support, it will decrease the longer you stay in the position...
ReplyDeleteThe market is feeling a little weak. Be ready to Short SPY if it does cross below $109 today. If it doesn't do it today, there is a good chance that we gap down for tomorrow morning's open. The next point of support will be between $108.75 and $108.80, we should be able to pass through this. From there you should look to cover between $107.95 to $108.30.
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