Hey Market Pilots,
Right now, I’m feeling like I’m stuck between a rock and a hard place. I took two small trades, which if they work, might only go for two days.
The SPY is near all-time highs as it keeps bumping along the Daily 50 SMA. On the surface, this should be fine, but I just am not getting the sense of strength around the market. It’s an odd push and pull because the SPY is up and many names are at double bottoms, which if these formations hold then we could see some upside. However, we need to keep in mind that if the SPY rolls over to the downside, these double bottom patterns could break lower and let some flood gates open.
The trades I decided to take are extended to the downside, at double bottom support, and have begun to use MA’s on lower time frames for support. If these work and the market holds up for the week, then we could get a two-day bounce to some overhead resistance such as a major moving average.
I specify two days because I placed the trades on Tuesday, and Thursday is the last day of the trading week before a 3 day Easter weekend. Since the market feels precarious, I really don’t have an interest in holding positions over an extended weekend where anything could happen on Monday.
It’s a tricky atmosphere right now, and as long as you recognize that, then you can contextualize your trades and not be caught off guard when things may not go as typically planned.
Your Profit Pilot, TG.
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