The S&P500 and the SPDR SPY ETF were rejected on Tuesday at pivot highs. These levels reflect a 38.2% Fibonacci zone as well as 2600 (260) OI resistance. RSI remains under 50, which tells us the dominant trend remains intact.
Futures are weak and starting another leg down as we start our morning analysis. Gold is flat and the US Dollar is rising.
SPY Daily
The area delineated in blue is resistance. SPY is near 248.00 (+/-) in early trading, while MACD remains above its signal line. RSI is below 50, so respect the dominant trend, as the 21d is still dropping. Price is below.
Many traders I’ve spoken with lately are expecting a retest of the reactionary low at 218.26, as such they are buying gold, bonds, and hedging for the downside risk. They are buying puts in weak stocks.
Our plan for today if weakness persists.
We started hedging with SPXU and SQQQ. We’ll add after a short bounce, if we get one, then reassess after the opening range. We will consider gold and bonds today as well, potentially adding to the latter. AGG, TLT.
We’ll also watch for large put plays that hit the tape, to gauge how institutions are playing the bearish trend. They usually make their presence known after 10:00 AM, so stay tuned today.
Will institutions buy or wait for lower prices? My guess is they will look for lower prices, so join us today in the trading room for our LIVESTREAM broadcastduring market hours, as we navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
Want to become a member? Check details here:
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Live Sessions
Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.
during market hours, as we navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
Want to become a member? Check details here:
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Live Sessions
Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.