The market didn’t have enough mustard in the jar to close the week above the big $300 on the S&P 500.
The SPY happens to be the easiest trading vehicle for the markets. By far the most popular ETF, everyone watches it like a hawk.
My every waking thought centers on how to keep making money trading the SPY. I’m constantly churning out new ideas for the Daily Profit Machine. With so many traders working the SPY, you need an edge.
Without the market failing to remain bullish, OUR edge is to the downside. That’s the way it played out this week. Don’t believe me? Here’s what I sent out to members Friday before the market opened.
This call gave members some serious profits!
Market Recap: Where do we stand?
Below we have the weekly chart for the SPY. The same $300 level continues to hold the market back. Every time we try to get above, the market gets rejected.
SPY weekly chart
Plenty of traders fear October. Everyone’s told October is bad for stocks. If you look over the entire history of the market, October isn’t great. Most people just remember it for major events (Black Monday 1987, Black Tuesday 1929).
Except, October isn’t that bad. This is the SPY performance for the last 20 years by month.
June clearly is the worst month for stocks. October turns out to be profitable a bit less than half the time. But it’s not nearly as dire as you might hear on television.
The Trading Week Ahead: What I’m Watching
We’ve got three critical levels in the SPY. I’ve marked them on the weekly chart below.
SPY weekly chart
First, $300. That remains resistance. The exact high happens to be a bit higher. You need a clear, undeniable close above that level for a new bull market.
The bottom white line is SPY $282, which sits just above the ETF’s 200-day moving average and represents key support. Same deal here. Get a clear close below, and we’re heading a lot lower.
But between $282 and $300 is a range of about 6% that short-term traders can capitalize on.
This is how I analyze the market. I don’t put my opinion here. We only look at what we see on the chart.
Lastly, $291 represents the midpoint of the $282-$300 range.
Just like $300, if we stay above, we could see a reversal to the upside. If not, then $282 will be the level for traders to watch next.
This might sound difficult. If you arm yourself with the knowledge of key technical levels, you can trade through any kind of market — green or red.
Some of the fastest profit-making opportunities come when markets are falling. You just need the right technical tools to capitalize on them — like the head-and-shoulders pattern.
Many people claim to know this pattern. Yet, few implement it successfully. Anyone can learn how to spot it.
Let the chart be your Jiminy Cricket. Listen to it. Let it guide you to profits.
I want you to be successful. Too many times I watch people flail around without a clear strategy.
Let me cut your learning curve. Build off what I’ve learned. Use my Trade Of The Day to make you money and teach you the real way to beat the market!