Monday, December 2, 2013

SPY Trader Now Negative...12.2.13

Following up on yesterday's warning, SPY failed to get bullish except in a few (mostly tech) issues.
The short term ALERT did a good job of putting us in CASH last week and a cusory look at the technicals suggests there may be more downside to come.

Keep in mind that previous 3 day downturns have produced buying spurts so once again we just have to take the signals one day at a time.

The thing to keep in mind regarding the SPY Trader is that this IS NOT a delta neutral trading model.
Generally speaking what we look for is a ranking of XIV, SSO and then SPY....this is bullish momentum at its best. If this is not the current ranking then we must be suspect of Long positions, and when the short term ALERT turns down, the P6 slope goes negative or the pair % chart crosses at the zero lined then CASH is highly recommended.