The market went basically flat today, closing slightly lower. This was the consolidation day that I was looking for yesterday. So, I was off a day... nobody's perfect I guess. Regardless, I'm looking for the swing trade play, and I'm just sitting in cash for now.
I think tomorrow could be another consolidation day, just like today. Slightly up or down, but no big move yet. Everyone seems to be waiting on the jobs numbers on Friday. I think it will fool everyone and be viewed as positive... which will push the market higher again.
I'm really looking for a move to 112.00 spy or better. I'd love for it to reach 113.00, which was the major lower level of support during the 2 week battle between the bulls and bears, while inside a sideways channel. The 115.14 was the high, and the low was just a hair above 113.00 (spy).
The ideal plan to happen is for the market to pullback a little tomorrow and then rally one more time on the fake jobs numbers Friday, as you know the government is going to lie again. Let's just hope they do a good job of it this time.
Here a chart of what I'm looking for...
The trades you decide to take shouldn't be based on what I'm taking. I'm very confident of this wave 3 down coming, and that's why my risk tolerance is high. Buying short term February puts could make you a ton of money or you could lose it all too? My indicators tell me it's going to fall, so I'll be taking higher risks. Choose wisely....