Click here to get a PDF of this post


 

 

  1. SPY has closed below the 10 day sma for 16 straight days now. I prefer to play the long side when we are trading above the 10 day sma. I could take a long position with a close above this 10 day line. We may get this on Tuesday with the looks of how the futures have been trading today.

  2. Secondary resistance is at the 50 day sma. A break above this line will be the first sign that the recent down trend could have been broken.

  3. The 100 day sma has been support for the past four trading days.

  4. The next level of support is at the 150 day sma IF something goes wrong in this political environment with the Syrian uncertainty and the market goes back to risk off mode.

  5. The futures seem to indicate a gap and go or gap and fail on Tuesday when the U.S. markets open, if we gap up and close above the 10 day that will be bullish if we gap up and close near the lows of the day and back at the 100 day sma then the current down trend stays in place.

  6. If this equity market as a whole can get back in risk on mode and start trending back up then my favorite stocks under accumulation are Facebook and Tesla.

  7. Since we failed at all time highs equities as an investment class has been under a calm steady distribution even though leaders have held up very well at all time highs, it is a stock pickers market again for now. I do think this is a time to be cautious and trade smaller than usual due to headline risk.

  8. This is an active traders market on the indexes not a trend traders.

  9. Monster stock traders have to have great entries near key support lines to not be stopped out of positions, this is a buy the dip market not a buy into momentum market, stocks are retracing quickly.

  10. The nature of this market has changed since we failed to break out to new all time highs in August. We are currently chopping around in little tight price ranges making this an active swing traders market.