- The market did not break out above /ES 1260 as expected. Rule # 1: There is no gift horse in the stock market.
- I had mixed signals throughout the day, from buy to sell to buy to sell...that for a period of 1 full day makes me suspect if the market goes up or down tomorrow. I had not gotten such type of day with mixed signals for a long long time. Till there is clarity, move to cash. I was stopped out today at the end of the day. Down but like I mentioned in my previous posts, I am able to afford it.
- In the chart below, look at the highlighted triangle. If SPY falls below, I see a big air pocket below the break down. Target can be anywhere but lower at ~ 110. SPY could breakout above as well but that is to be determined. When there is big TBD, I am moving both VST and ST models to cash.
4. I could not get this post on time because of rapid move during the last hour. What does this tell you? Nobody but you will be able to close positions when needed. You should be able to organize stops for your portfolio. If you can't do that, stay out of the stock market.