SPY is currently in a distribution phase. It has been trading sideways More or less since Nov 2014. There has been a lot of volatility with interesting spikes in bullish volume. The 'Santa Rally' from October 2014 to December 2014 was very force full with immense bullish volume and candles, needed a quick rest and a lot of selling.
That's precisely what has been occurring in the markets the last few months. Many analyst keep trying to pick the 'top' of the market since the SPY is at the all time highs. When in reality, it appears the SPY is coiling up, ready to spring again (pun intended) into the summer months of trading.
Sell in May and go away might not be the best trading plan in 2015. There is a lot of evidence that SPY in April and May of 2014 will be very similar to April and May of this year.
Therefore, I am bullish on the SPY waiting for an actual close above $211.39. If that happens, being long the ETF and or calls is going in the direction of the primary trend. I will have triggers to buy puts on any pull backs to prevent getting whipsawed out of what could be an amazing bullish run, up to at least the $225 price level. This likely could take the rest of 2015 and probably will be a slow and arduous process but a bullish one, to say the least.
That's precisely what has been occurring in the markets the last few months. Many analyst keep trying to pick the 'top' of the market since the SPY is at the all time highs. When in reality, it appears the SPY is coiling up, ready to spring again (pun intended) into the summer months of trading.
Sell in May and go away might not be the best trading plan in 2015. There is a lot of evidence that SPY in April and May of 2014 will be very similar to April and May of this year.
Therefore, I am bullish on the SPY waiting for an actual close above $211.39. If that happens, being long the ETF and or calls is going in the direction of the primary trend. I will have triggers to buy puts on any pull backs to prevent getting whipsawed out of what could be an amazing bullish run, up to at least the $225 price level. This likely could take the rest of 2015 and probably will be a slow and arduous process but a bullish one, to say the least.
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