Why I am long $SPY $QQQ $IWM going into tomorrow.
I have been eyeing to go long S&P 500 $SPY, NASADQ $QQQ and Russell 2000 $IWM since June 1, 2012 when we had the false breakdown on volume which had no followthru the next day.
$SPY $QQQ $IWM all trended up till June 19, 2012 before we had that big down move which was called out in my post ‘ WHY I am long $TZA’. We had a sever down move on June 21, 2012 and I was watching how the market was gonna react on June 22, 2012. Once again we had very little follow thru to the downside.
Between June 26th and Jul 3rd we once again trended up nicely, I blogged about ‘ Is it time to buy the DIPS’ on July 4, 2012 before we had a down move today on July 10, 2012.
AT 3:50pm I tweeted out to go long $SPY and also mentioned in free online live trading room
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My Thesis why I mentioned long $SPY $QQQ $IWM, as traders we look for opportunities which favors the reward to risk.
As can be seen from the chart ,
1. Tested trendline B which is the upward slopping trendline.
2. Tested Trendline A which is the downward sloping trendline.
3. 134 on $SPY is also the region between 38% and 50% retracements on fibonaccis.
4. We did the gap fill created on June 29th gap up.
5. We have the volume accumulation signs in $SPY
6. 20EMA and 50SMA as support on daily.
The above are the 6 points why I mentioned to go long $SPY $QQQ $IWM.
My thesis is nullified if $SPY goes below 130. But once again as a trader we look for risk-reward with 4point downside, I am looking for 1st tgt atleast to 142 on $SPY.
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