SPY (25 November 2008)

Another huge move to the upside, fantastic day. I got out of ERY early to avoid any more pain, learned another lesson not to hold positions overnight. I will never ever do that again...better to settle for less profits than to lose some money....lol

Today's rally SHOCKED many bears including myself, even though I have a trading plan....but the mental side of it is still bearish....and I have to admit that...it was only after reading a few postings on some other credible blogs.

The charts have been telling the truth thus far...and technically...my trading plan has been working.

Here is the trading plan for Tuesday.

My strategy is to daytrade only:
1. Get below 79.82 then we are headed for 78.11 or 75.41.
2. Get above 88.38 then we are headed for 90.1 or 92.83.
3. Else expect some sideways trading. Plenty opportunities for day trading in this environment
Most likely the trading range is between 81.3 To 87.9.

Keep in mind that MM will take every opportunity to try to rally the market. The forex market is on the bull's side. And we are also approaching month end, so there could be some window dressing if not expect some sideways trading to maintain the gains from the 2 day rally.

On the downside, I have no comments at the moment...it is hard to go wrong if you follow my trading plan because it is neither bullish nor bearish.

My picks are:
For Shorts: ERY
For Longs: ERX