Today’s Trading Plan: Employment Wrecker

Technical Outlook:

• Yesterday’s solid rally faded and closed just barely above break even on the day. 
• The candles of the past two days are opposite-facing dojis which just leads to indecision by this market. 
• Predicting the direction overnight of this market is nearly impossible, especially when the charts are not giving you anything to work with. 
• Don’t be surprised if SPY tries to rally at some point during today and come close to or actually fill the overnight gap. But once this happens, often times, the selling resumes again. 
• This market is one that seeks to fill traders with regret, whether it be for selling too early, selling to late, not being long enough, not being short enough. That kind of regret will manipulate you into trading in a manner that will bring ruin upon the capital in your portfolio. 
• You cannot, with any confidence, consistently pick the direction of this market day-to-day. 
• VIX dropped 1.8% yesterday down to 25.6. 
• SPY volume was average and below anything that we have seen since the selling picked up on 8/18 of last month. 
• Trade nimble, be careful about holding positions overnight, because the volatility is still at extreme levels and much of the daily moves are happening before the market ever opens. 

My Trades:

• Sold SDS yesterday at $22.81 for a 1.6% gain. 
• Did not add any additional positions yesterday. 
• 100% Cash
• Will look to add a new position to the portfolio should the right setup occur. Currently I am focused on trading the ETFs as opposed to just equities. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: