Hello Everyone,
Quick Note: Trend day to the downside today with meager bounce attempts along the way. As you know, we were looking for a move down today with an initial target around 4220 area. The SPX closed on it's lows for the session at 4201. After closer examination of the first legs (previous Wave A's), I noticed that they ranged from 225-236 points which would provide another symmetry target around SPX 4175-90. Quite honestly, we have mapped out this decline pretty darn well amounting to hundreds of points in both directions over the past few weeks. As always respect the prevailing trend until evidence changes.
As far as trade ideas, we have primarily focused on commodities to the long side (energy, potash, agriculture, and precious metals) which have done extremely well with a few select shorts added when timely. It's simply too volatile to manage many individuals names so remain prudent.
Administrative Note: I'm filling in for Matt tonight as he unfortunately had flooding in his basement again overnight.
Note: Several previous ideas on watchlist remain valid but simply have not yet triggered so continue to re-examine each night. Consider making a fresh top 10-12 setups each night and put on front page along with existing trades. My advice is to keep your total ideas to a manageable number. Lastly, it's best to wait at times for valid setups to form - sometimes less is more. Big moves tend to occur first and last hour and overnight sessions.
Please take a moment to look at the trade ideas.
