Last week started strong, but the market ended the second full week of October trading, giving back all its gains from the session. $SPY was on track to test its ATH’s once again, but that bullish sentiment was short lived, as the ETF sold off over 11 points off its weekly highs; which was ticked on Monday’s session. We saw a bit of strength off Thursday’s lows, but the selling into the close of Friday’s session, brought that bull party to a screeching halt.
We all know about the headlines. We all know what’s lurking around the corner to move price. We all know the typical games the Street plays; and now we’ve got political headlines to side-step.
There’s no denying the market wants to run. $SPY wants to crack through last week’s highs of 354, we see that – we all know what’s around the corner. A slight bit of “good news” should send this market to highs; however, it’s never that black and white.
Sectors continue to cycle through strength/weakness, with the usual topping suspects; stick with the winners until proven otherwise. On the flip side, the bleeders continue to bleed out, so opportunity is staring you in the face to the downside just as cleanly. Just let the dust settle and catch the meat – leave the head and tail for the scavengers.
With that said, as always, keep it simple; if this, then that.
Remember, it’s chess, not checkers – be patient and trade only clean charts with crystal-clean A+ set-ups.
***This is our Sunday scan for the week, if/when a pre-determined entry level is reached, we’ll put on risk; otherwise, we patiently wait.
We’ll be looking at the following securities throughout this week’s session in these sectors: Consumer Discretionary, Health Care, Industrials, RE, Tech
$BNTX, $CHWY, $CRSP, $DADA, $FSLR, $FSLY, $JBHT, $OSTK, $PENN, $PTON, $RDFN, $Z
Keep an eye out for our daily Trade Ideas throughout the week, where we share the stocks we’re looking at for the day’s session.
Members will be getting a video breakdown of our entries and exits in securities on both the Watch List and additional daily Trade Ideas.
As always, remain patient; all you need is one. Manage your risk properly and cut your losses quickly.
If you would like to know more about how we trade the market here at The Street Trading, reach out to us and we’ll get you started.