Here is what the weekly SPY chart looks like right now:
The late rally from the low isn’t helping much. Even if SPY rallies all the way back to 136.40; we will have the dreadful Doji bar against the 61.8% Fib retracement. Either way, I’m taking my 85% cash with me over the weekend.
Oh yeah, I bought back half of THLD I sold this morning. The chart looks so strong I can’t help but feel that it will go much higher next week. I still have my TZA starter position but my SKF was stopped out.
Notice the last red bar is now below the 61.8% retracement of April 6th high and June 8th low. This can only validate the resistance power of the Fib 61.8%. If we have a red candlestick bar by end of the day (which mean a red weekly bar), there is a high probability the price actions will roll off to the downside.
Hence, I’m mostly out of my equity position:
Long-term equity: 11%
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