Don't pay dollar to keep 2 cents when wrong. Cut your losses quickly. Trade what you see, not what you think.
Joined Oct 26, 2011
719 Blog Posts

SPY is playing DEFENSE across the board

From the weekly to the 15 minutes charts, SPY is struggling as you can in the the charts below:

Below is the weekly chart:  By the way, the bar you see is qualified to be called the Bearish Divergent Bar per Bill William’s Trading Chaos book (although the day is not over yet; you can say it is in the process of making a Bearish Divergent Bar).

Below is the Daily SPY Chart.  You can see the same deal as the weekly chart.  The making of a daily bearish divergent bar is in process.

Below is the hourly SPY chart:

Below is the 15 min SPY chart:

This is actually an experimental post since I’m trying the TC2000 charts in different size format.

By the way, just because we have a divergent bar (per Bill William’s book) in development doesn’t mean it is a sell tomorrow if price break below today low.  Bill has very specific criteria in applying the divergent bar signal together with the alligator moving averages system.  It is better you read Bill’s material to familiar yourself with his system than for me to explain anything in a few simple charts if you are interested in Bill’s system.

However, I may not necessary follow Bill’s system 100%.  I like to experiment with Bill’s idea with some of my own way of trading the chart.  In a way, I borrow from other traders and try to develop a system that I can be comfortable with.  In another manner of speaking, I’m constantly evolving my trading system so that I can listen to the market better.

Today summary, I’m playing defense today by taking my profit in my precious metals.  I am currently flat on all EXK, SLW, and AUY.  Although I’m tempted to buy them back but SLW is reaching to the 89 xma so I’ve to respect its resistance power.

I’ll wait to see what happen tomorrow before committing cash back in.  Meanwhile, today is just another simple day trading exercise.

Current position:

9.7% LT equity

90.3%  Cash

Good Hunting!




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