9 I have been eyeing to go long S&P 500 $SPY, NASADQ $QQQ and Russell 2000 $IWM since June 1, 2012 when we had the false breakdown on volume which had no followthru the next day.
$SPY $QQQ $IWM all trended up till June 19, 2012 before we had that big down move which was called out in my post ‘ WHY I am long $TZA’. We had a sever down move on June 21, 2012 and I was watching how the market was gonna react on June 22, 2012. Once again we had very little follow thru to the downside.
Between June 26th and Jul 3rd we once again trended up nicely, I blogged about ‘ Is it time to buy the DIPS’ on July 4, 2012 before we had a down move today on July 10, 2012.
AT 3:50pm I tweeted out to go long $SPY and also mentioned in trading room
Follow me on twitter @dchsn6 for my tweets.
My Thesis why I mentioned long $SPY $QQQ $IWM, as traders we look for opportunities which favors the reward to risk.
As can be seen from the chart ,
1. Tested trendline B which is the upward slopping trendline.
2. Tested Trendline A which is the downward sloping trendline.
3. 134 on $SPY is also the region between 38% and 50% retracements on fibonaccis.
4. We did the gap fill created on June 29th gap up.
5. We have the volume accumulation signs in $SPY
6. 20EMA and 50SMA as support on daily.
The above are the 6 points why I mentioned to go long $SPY $QQQ $IWM.
My thesis is nullified if $SPY goes below 130. But once again as a trader we look for risk-reward with 4point downside, I am looking for 1st tgt atleast to 142 on $SPY.
My previous Market Calls
dchsn6
9 Responses to “Why I am long $SPY $QQQ $IWM going into tomorrow.”
razorsedge
thanks, good thought.
dchsn6
thanks
ttttyyyy
You will get smoked for going long here. That is all. Carry on.
republikat
Indeed, looks like a good risk/reward given your data points.
dchsn6
yezzzir..as traders that’s wat we look for..if we see it we take it…no ifs and buts..
CDuncan
For better or worse, completely agree with your thoughts. Executed a long position way to early today, but now with benefit of hindsight, believe I will recoup and profit by weeks end or by early next week.
dchsn6
i hear ya man…too early u get stopped out..too late u miss the boat..as long as ur able to manage risk efficiently then u wud b good in the long run…
zenhunter
Good presentation. Nevertheless, I believe today large-range price action carry much momentum to continue the downtrend tomorrow. I’m on the opposite side of your trades.
Gap up, you win; gap down, I win.
Let’s see who is the lucky one. 🙂
dchsn6
Thanks zenhunter…for me it’s more about followthru after a trade…even if i’ts gap down ..but if the gap down is still getting bought and we close at the highs…in my books it wud still be bullish signs…but will c can’t predict anything but just follow price action and manage my risk.