Short Term Breakout Failure

SPY_7_21

Looking very short-term at markets, today’s failure to hold yesterday’s gains and potential close below yesterday’s lows is the first subtle sign I’ve seen that momentum is slowing since this rally began in early July.

Am I still constructive and bullish intermediate / long-term? Yes.

Am I getting short? No.

Am I reducing exposure? Yes.

Subscribers and I closed out winners in $RMD (+4.20%) and $UPS (+1.95%) today and also locked in some gains in $SPXL (+5%).

We still have other long exposure we’re keeping on.

Keep an eye on this developing range to play itself out, and my thought process is to put the cash raised from today’s sales to use at lower prices.

I am holding a webinar next Tuesday at 1PM EST where I’ll be discussing trading setups & strategy. Open to all for free with a signup here. Hope to see you there!

 

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Evan Medeiros

Evan is the founder of the Trade Risk. With 20+ years of coding experience and a B.S. in computer science, Evan brings a systematic discipline to investing in the stock market.

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