I was hoping for a little correction, and if you read my last post, you know that I've been cautious and was not initiating any swing positions. The market didn't really sell off all that much today (Friday April 8th), but enough to test the 10day MA, which is good. I would love another selloff to test the 132 level and would be buying with both hands if we get to the 50d MA again at ~131. In fact, a little cup and handle formation on the SPY here, before a move higher would be perfect in my opinion!
Here's a daily chart that shows the possible cup and handle forming. As I said above, I'd be a buyer in the 131 area, but for now, I will just focus on trading less. It is also possible that today WAS the pullback, and if that's the case, then I will be buying on a breakout above this resistance level.
Even though I said I wouldn't trade much this week, I still did. This was a bad idea, and I knew it from the start. I should have just sat on my hands, but instead I got chopped up in the market. Made a few bucks here, lost a few bucks here, and overall I lost a couple hundred bucks, mostly commissions, and instead I should have been sleeping in! The good thing is that I did only half my usual number of trades, so I'm starting to get better at identifying periods where I need to be trading less.
I'll try to post a watchlist on sunday for next week! Have a good week-end!