Ugly Day!

As a trader, I am glad to be sitting this one out with 100% cash. Something extraordinary will have to pull me into this market today. Otherwise, I am expecting to finish out the day 100% cash. 

I closed out my seven long positions on Thursday. The market wasn’t behaving in a historically very bullish period for the market, and the S&P 500 had given up the solid gains from Tuesday, and from what we had seen the last two years from the stock market in January, it simply didn’t make sense for me to hold my long positions any longer. So I cashed in the positions – 5 out of 7 of which were profitable and went to cash. 

And then when I woke up at 5am this morning to see SPX down over 30 points, I was even more enthused that I took the actions that I did on New Year’s Eve. 

With that said, key support on SPX is close to taking out price support at 1993 and the lows from December as you can see below. SPY is also having its own breakdown today by pushiing below the $200 key support level, which makes me think there is a solid chance that SPX won’t have much problem in taking out its own key support level as shown below. 

SPX meltdown analysis

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