Market Update and Tactical Use

These market updates aren't just for your information, in fact the reason I first started using the tracking portfolios was to place orders based on market updates alone to show you that the information there was actionable. By showing you trades that made money based on the update alone rather than a trade idea, I was trying to show you that you can use these market updates to trade or plan trades without any official positions being called out as each member trades in a different way, many use the market updates for that exact reason.

I think I may start a trading portfolio rather than the tracking ones, just so I can show you the usefulness of the updates as well as some concepts in risk management, trade management and patience.

For now, after having looked at the futures and the other averages, the SPY is a good proxy for the market so I wanted to give a little more in depth look at what the charts are suggesting the most likely short and longer term paths are, you have to think about how you can use them.

For today, the intraday activity suggests that we can pick up some more longs, the ones we looked at yesterday, but just didn't have enough objective data to place a lot of the trades. These are shorter term in nature as are market theory would go so I prefer some leverage, whether 2-3x leveraged ETFs or options, it doesn't make that big of a difference to me.

 SPY intraday 1 min negative suggests a pullback, this is where we'd be interested in looking at short term long positions.

The 2 min isn't as bad...

The 3 min is even weaker on the intraday negative, this suggests a pullback is likely, but it's not strong distribution so I'd use it to look for longs I like at a discount and lower risk.

 The 5 min chart since the F_O_M_C and last week's accumulation vs. more recent 3C signals

30 min positive currently, this suggests that any short term long positions are now a lot more worthwhile than they were last week.

Like the difference between the IWM 10 min (bullish short term) and IWM 15 min (bearish longer term), the SPY 4 hour is showing the same, this suggests that while short term longs can be profitable, the larger trade is to use any price strength to enter, re-enter, or add to Core Shorts for the next trend which should be a much stronger trending bear move.