Daily Recap: SPY made a new high this morning just as I speculated last night but then the weakness got the better of it and it started correcting, as usual it coincided with some bad news about the shutdown, this time republicans leaders can’t seem to get the support they need from their own members in order to finish this. Anyway, to make a long story short, if they reach a solution tonight we’ll probably see a gap up in the morning otherwise, continuation down, my money is on the latter but what do I know!
Trade wise the 60 min reversal long position I held was closed today at break even, but as I mentioned during my daily updates, I may have jumped the gun and after some system (and soul) research I arrived to the conclusion that the stop should have been issued at 170.36, will try to remember it for next time.
The 60 min short position was triggered today during the afternoon decline, but was not confirmed (60 min did not close below signal line), so if you did enter the trade see the battle plan below for updated stop values. Remember until a confirmation there is a chance this is a reversal and should be treated that way in case SPY turns around and goes back up. You can see on the left and example of a reversal to the down size.
Battle Plan for the 10/16/2013
60 min short stop over 170.44
60 min long reversal over 170.68
120 min short under 168.87
* Stop loss lines should be triggered if there is an interval close above them (i.e. 60 min or 120 min ), they are published in the daily blog and updated during trading hours on twitter.
* Take profit lines should be triggered immediately when crossed, they are usually issued during the trading day on twitter.
* Entry signals should be triggered when crossed, but take into account that until there is a confirmation (i.e. close of the interval across the entry signal) , the signal can become a reversal signal.
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