Hello everyone and happy Thursday! The market is having a nice day as you know, a gap and go. First off from a technical perspective, even though that pullback was deep, we viewed it as some sort of wave b and we were looking for another upside move in wave c. Yesterday should mark the low of wave b or wave 2 under a bullish scenario, with this move up being wave c or 3.
SPY and ES systems open trades:
We still have open trades on the 22 sub systems: 2 entries on the SPY bear long and 2 entries from the SPY CCI long.
The CCI system is most likely going to exit today, nice trade!
Since I manually held the SPY bear long we'll play that one buy ear, however price is now above where the system actually exited. At this point a hard stop should be placed at yesterday's lows and quite honestly price has not business going even close to that, thus a stop could probably be today's gap opening price.
See attached images: The first two show the SPY CCI long and SPY CCI long trade statistics stats.
The third image shows the CPI - yesterday was a VERY low risk buy/long as the CPI had closed at 1.90 well outside of its Bollinger Bands, bearishness was overdone!
Matt