Here’s When The Trade Might Deserve ‘Flipping’ It
When a stock or index is
transitioning in terms of its trend, opportunity can present itself in the form
of trading from both sides. If key
technical levels are in the picture, you might find yourself playing market
maker as you take the high-probability trades against key support levels on a
contra trend play, as well as in the direction of the current market action.
Today the SPY was written up as a counter trend
or potential reversal trade as it did some testing in an intraday pattern.
12:14:54
Intraday Setup Alert
The S&P500 ETF (SPY)
has put in a high volume intraday low, forming a
1,2,3 pattern against a daily chart 78% retracement level (2/24 low). The
SPY is off .27 at 114.69.
The SPY proceeded to rally .30 cents, which
personally speaking, is a nice benchmark to take a piece off on an index proxy
like the S&P. At the same time, the balance, under normal circumstances, might
have its stop moved to break even. But, when key levels are involved, such as in
today’s trade–the potential ‘to flip’ the position into a playable short is
something that maybe next time deserves some attention of its own…and maybe
delivering something more than just .30 partial profits.