The SPY went from the top of the range today (115ish) right to the bottom (112ish). Another strong test of the 112 level and I think we can expect SPY to see the 200 day MA (110.36).


Financials, real estate and solars saw the brunt of the selling today, bonds, the dollar and silver outperformed.

The dollar has been looking good compared to the Euro lately. To give you some perspective the dollar index is trading close to where it was in the middle of March 2009 right around the bottom of the market.

In truth I did not expect the kind of sell off we had today. I was expecting a quieter choppy consolidation day. It goes to show that there still sellers a plenty out there.

I still think we are going to get one or two more days of choppy consolidation before we go down and test that 200 day MA, but I am preparing for anything. Either way keep an eye on the SPY 112/111.75 level and the recent lows in anything you are trading. They need to hold. 115.33/115 is the top of the range and it’s probably a sale if we make it back up there tomorrow.

The following ideas maybe actionable tomorrow but be nimble out there. If stock after stock is breaking down and the SPY is below 112, stay away from support buys. If stocks don’t break down where they should or break down and snap back then look at those failed breakdowns as a chance for a support buy. Remember no catching knives; buy on the way back up through the level with a stop on the low.

bvn 38 long

asia 21 short

dgx 54 short

do 69.5 short

gg 44 short

mur 54 short

ndaq 19 short

pru 59 short

amg 72.05 reversal/support buy on 150 day MA

amln 16.23 reversal/support buy on 200 day MA

anf 37.14 reversal/support buy on 200 day MA

axp 38.65 reversal/support buy on 200 day MA

fdx 81.62 reversal/support buy on 200 day MA

vit 19.86 reversal/support buy on 150 day MA