If SPY closes near $139.72 SPY closed today @ $139.63, therefore we have a confirmed small range Doji. This is not good for the bull since it increases the probability of a development of another evening star candlestick pattern.
I’m taking my chance that this Doji in development is a bad omen for the bull. I bought starter position on TZA and SKF once again.
Take a look at SPY daily chart below. Notice that each of the correction started with a small range bar (some of them doji). Will today be another preparation for the next leg of correction?
I placed my bet. Let’s see if it will pay off tomorrow. Again, I’m used to being wrong and my stops are in place.
Believe it or not, I got stopped out of my AIG, SLW, and possible EXK (still waiting) already due to my stops placement being under the 79 sma & 89 ema in my 5 minutes charts. I don’t like to hold my position if the daily momentum is gone by close of day.
Thus, my inclination to buy TZA and SKF for tomorrow gamble.
Good Hunting!
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Market didn’t hit any extreme overbought levels today however Price is now divergent from RSI readings on a 60 min in IWM / Rut futures.
That said, there is a fat, unfilled gap in SPY at 140.6 from May 3rd on a 60 min that is probably the sellers last shot at pushing markets lower before testing the highs.
I’ll take a doji before OB; let’s see how it plays out tomorrow.
Thanks for the info!
If you put a trend line on the top you’ll see SPX is moving in a perfect channel –
http://ibankcoin.com/kcscott/2012/08/06/simple-trading-plan-short-sso-chart/
perfect swing trade:
Look like it! Can I borrow one of your girl for good luck? grin…
Thanks!
IMO, very smart move to start off small with a TZA position but I wouldn’t have gone all in, probably would have stayed some longs and used the TZA to hedge b/c we are just in neutral territory right now according to the oscillator http://stockcharts.com/h-sc/ui?s=%24nymo
but then again, you did say “gamble.”
You are right, it is too early to swing for the fence. I’ve to see some big selling and waterfall prices before even loading up. But even then, I will never go all in. It is suicidal even if you win because you won’t be so lucky the next time.
My starter position is not significant and will not hurt me much even if there is a gap up tomorrow.
Neutral territory is basically what a doji is saying; but market do not stay neutral for too long so let’s see which way it will go tomorrow.
Thanks!
Trading Journal update:
Out of TZA and SKF for small losses.
Bought back AIG and bought starter position on WYNN.