SPY DAILY
We posted this chart earlier last week. We said that we like the SPY as a buy at that level on the channel line. Now as the week ended and volume is picking up to the sale side, we are more inclined that this will break. Maybe not the first time, but that it will happen and backing us up is this bearish rising wedge on the OBV reading showing us we might be on the hand of some serious selling about to take place. As day traders we wait and watch the volume!!
Hello Traders, I hope you guys had a great trading week this week as the action was there for the taken. We are continuing to see weakness across the broad market as the dollar trade is still having an effect on the markets. If you guys have been following our videos and analysis you guys know we have been all over the $USD trade and have used it to a tee to help us gauge these markets. Now as the bears are gaining more steam to there roller boat and the bulls are starting to get tired of watching there support longs break down, I think we finally have the correction we all have been waiting for. Now you must be saying yes it's time to bring home the bacon? Well guess what its not because the same way they didn't make it easy to make money when the market was going up, the same way they are not going to make it easy when the market is in a correction stage to head lower. Now you have to think as well is this just a minor pullback or is this going to be a deep correction. At the end of the day we won't really know until 6 months down the road and everybody is looking at charts trying to proof that there analysis was right( LOL we all do it). In any case, I went to the office Saturday and updated every chart I had on the indexes and some sectors. All of my sector charts that I follow to see where the money is flowing into have landed into the bearish column of my playbook with two landing in the neutral side and none landing in the bullish side. I have seen this whole market correct by just using the sectors and breaking them down into three sections every night( Bullish, Neutral,and Bearish). So I feel more confident in my analysis and what I provide you guys with just like how I told you guys to short ERX and posted the analysis the night before. Now I like to joke around a lot, but now that volatility is coming back into the markets we must capitalize now before the summer doldrums trading comes up again. We are hoping to have a website up by June and be able to provide you guys with more hands on training and tools. Also because I had problems with my freaking recorder program this weekend I was not able to put up a video. Now I must do what I hate to do which is save charts and post them with some analysis. It's much easier to be able to talk about it and show it with the real time annotations. Oh well comeback and some charts will be up by tonight for sure. In the meantime I will just post this one chart that allowed us to capitalize on this market to the downside and should have allowed you to do the same. Follow us on Youtube( askchrishetrades), Follow us on Twitter( askchrishetrade), and be sure to email us if you have any question regarding anything. Also for those that are interested in taking the next step and would like to find out more information regarding my prop firm that I trade at please contact me.
Heat Maps
1 month performance
January was not a good month overall for the whole market and you can see that by just looking at this chart. Everything related to the dollar basically got crushed and still has more room to the downside for some of the stocks that I know. Banks are trying to hold up because as soon as they go now here goes the market and that could happen next week. Not a surprise to see that BS rally we had in the banks to sucker more people in as they are trying to hold that sector up as the last hope from a crash.
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