The SPY is Falling: News ALGOS at Work
The S&P500 SPY ETF began falling after plans were announced late Tuesday, to impose tariffs of 10% on an additional $200 billion worth of Chinese imports. At the moment SPY is -1.60 (-0.57%) in pre-market trading. News ALGOS used the announcement to punish the US Indices and big cap industrials. Most stocks are trading lower in the early session.
Stocks like Johnson & Johnson (JNJ) are rebounding in early trading.
SPY Failing – Another Opportunity?
We believe this weakness presents an opportunity, as many of the stocks that traded lower this morning have earnings on deck. In addition, most of these stocks have been reporting good sales and earnings, as the U.S. economy improves.
GDP has been in the vicinity of 3% and nothing has changed but the news. Once we see buying activity we will seek out the best candidates. We must see institutions actively buying.
Futures are moving off the lows.
We will wait for the Opening Range before taking any trades. That said, past dips on similar worries were bought, so we might initiate some cheap SPY lottos (calls) for a potential bounce.
Tune in at 9:20 LIVE for a “play by play.”
Happy Trading,
Vinny
https://theclosingprint.com/CV_Blog/bull-bear-market-weakness-opportunity-spy/
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