“Surviving is important. Thriving is elegant.” Maya Angelou
Well, it ended up being a perfect week to take off last week and it looks like there will be many more quiet days ahead this summer which is great.
Markets are choppy and fast moving with gaps prevalent, meaning it’s hard to hold much overnight.
I’ve advocated a high or all cash position for the past couple weeks now and I don’t think that view will change right away, even with earnings season starting.
It is always best to wait for super setups, which are likely by the fall, and then deploy your cash rather than getting chopped up in this type of market and then not have all your cash once things get good again.
Gold and silver remain weak with the dominant trend lower no matter what anyone else tells you.
ARCA:SPY fell under the 209 area and now has a bear flag building.
Volume was very strong today off the lows and then we saw the 207.50 gap filled before we faded the rest of the day.
There are lots of day-trading chances in this type of market but holding overnight doesn’t seem to be the best of ideas for now.
If we can see a move above the 21 and 50 day averages at the 208.80 area then that should cancel this bear flag if it can hold on a closing basis.
Otherwise, it looks like we may be ready to test the 200 day average near 204 in the next week or so.