Look at the SPY daily chart below. This week is now officially a consolidation week since we have 5 days of small range day. And out of this 5 days; we have 4 green bars versus 1 red bar. Therefore, from a probability standpoint, the market wants to go up or has the propensity to go up. Thus, I’m backing off from using TZA to shoot for correction that may not come in this time frame.
Nevertheless, this week established a trading range b/w Monday low ($139.56) and Tuesday high ($140.92). If the low of $139.56 is taking out next week, my bet is that the correction will be more prevalent than before since more time was spent on consolidation this week. The longer the consolidation period, the more persistent is the breakout. But for now, price action looks like it may go higher.
Below is the daily SPY chart:
Below is the daily SPY chart with a longer time frame so you can see how I drew the Pitchfork.
Currently 82% 76% 71% cash with some AMRN and LT-equity position. Also bought back WYNN. I also bought LVS.
Good Hunting!
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Trading Journal Update:
Sold WYNN and LVS for small losses.
Sold AMRN since price drop below intra-day low. Will look to buy back at lower price if I can.
Price actions suggested difficulty in maintaining gain from the morning mini-rush.
Bought back AMRN per BW’s Bullish divergent buy signal but with a tight stop. Look like I may get stop out soon.
Stopped out of AMRN for a tiny losses but still a net gain for the day since my morning sales was a bigger profit than the losses I just took.
Currently FLAT on AMRN.
Bought TZA starter position.
Added more TZA.
Stopped out of my TZA to protect profit.
Flat on TZA.
Will keep any eye for re-entry.
Basically, I’m FLAT on everything except my LT-equity position. 88% cash.