If you see the SPY daily chart it will appear as if the market has fallen out of the trend, and were going down.
After reviewing the chart I couldnt really get a sense for sure where the market it was going. In these cases you have to filter out the noise in the
chart and zoom out into a bigger time frame. We can see that on the weekly chart the trend is still intact, and if the past 52 weeks are any indicator of the future,
we should bounce next week.
Recommendation:
I recommend a buy at the current level with a stop loss of 1.5 ATR.
For Non-Index Traders:
You just have to hope you stop losses arent hit between now and next week. I think there is a good chance of use moving up from here, but dont move your stop loss.
This is especially tempting with low volatility stocks, such as EXR,INTU,ZS, BJ, MSCI, etc, but these stock inherent the market volatility when the volatility on the indexes rises.
What I mean by this. IF you sized your positions, based on their low levels of volatility, your likely going to get stopped due to them increasing in volatility at a much higher percentage
then an already high volatility stock.
Best of Luck Traders,
-QuantStreetBets
After reviewing the chart I couldnt really get a sense for sure where the market it was going. In these cases you have to filter out the noise in the
chart and zoom out into a bigger time frame. We can see that on the weekly chart the trend is still intact, and if the past 52 weeks are any indicator of the future,
we should bounce next week.
Recommendation:
I recommend a buy at the current level with a stop loss of 1.5 ATR.
For Non-Index Traders:
You just have to hope you stop losses arent hit between now and next week. I think there is a good chance of use moving up from here, but dont move your stop loss.
This is especially tempting with low volatility stocks, such as EXR,INTU,ZS, BJ, MSCI, etc, but these stock inherent the market volatility when the volatility on the indexes rises.
What I mean by this. IF you sized your positions, based on their low levels of volatility, your likely going to get stopped due to them increasing in volatility at a much higher percentage
then an already high volatility stock.
Best of Luck Traders,
-QuantStreetBets