Let’s start the week out by looking at trade examples in the SPY. We’ll take a look at what is going on this morning, a great indicator that is effective in this situation, and why the SPY is an excellent choice for trading options. At the bottom of this email, I even include an update on a previous example.
SPY, or the SPDR S&P 500 trust was one of the first exchange traded funds and is also one of the most traded ETFs. That volume makes it ideal for great trades. SPY tracks the S&P and makes it possible for individual traders to trade moves in the entire index.
Look at what the S&P did on Wednesday to help us get an idea of what to expect from the SPY this week. The image below is Yesterday’s price activity.
This chart image is courtesy of FINVIZ.com a free website and gives a quick view of each day’s movement. Understanding the direction, the S&P was moving on the previous trading day is a great place to start.
Next, let’s look at chart that includes the Percentage Price Oscillator or PPO indicator. We are specifically looking at the lines in the PPO to cross but you can get more information about this indicator here.
The black line of PPO running right with the red line. They appear to be flat which doesn’t make for good trading. This may be a time to sit to the side until there is a clear direction. Alternatively you could buy and sell quick day trades to take advantage of the small intraday swings if you are comfortable doing so.
Potential SPY trade:
Here is the thing, this is a pretty unclear market today. Some times the best thing to do is hold tight for a day or two an let the market tell you what it is going to do. We are going to keep a close eye on this situation and if we see a signal we are going to alert our members immediately and write about it in our next article.
Stay positive and know you can do this. Knowing creates positive results! A part of the abundance process is letting go of anything negative, which creates space to receive.
I wish you the very best,
Wendy
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