NPP Trades Recap 6.9.22
Failure To Launch...so far at least
I was looking for a break of the 8-day SPY range post-CPI number, but the market had other plans and the bottom dropped out before the number was even released. Unfortunately, I was positioned for a breakout to the upside with SPY common and 7 Swing Trade holdings. I was stopped out of one of my Swing positions today and my SPY trade also hit its stop at 405. However I decided to hold the SPY until I see the reaction to the CPI number tomorrow. The move today could very well be a bear trap before a rip and I’m willing to hold my chips until the flop tomorrow morning just in case. If the down move continues tomorrow through ket support levels, I’ll exit the SPY position.
So what are those support levels? Well, if this is a wave 2 before a Wave 3 higher, then this down move should find support somewhere between here and 399/394, the .50/.618 fib retrace from the May bottom to the June top. If it can find buyers there and retake today’s high of 411.75, then I think we get our run to the low 420’s. If we lose 399/394, and especially 390, we’re back in a continuation of the downtrend and should finally hit the head&shoulders pattern target of 372ish.
Those are the levels. Below, I go over how we’ll trade it in the More Detailed Recap
The More Detailed Recap:
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