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New All-Time Highs.

That’s what we talked about in the most recent edition of SPY Daily.

As I mentioned, I believed the move for the day was betting against the SPDR S&P 500 ETF (SPY).

I sent this trade to Market Navigator members thirty minutes ahead of the bell:

SPY Nov 3 460 Put

When markets open at all-time highs, going long can be inherently risky.

All-time highs are when bulls may be closing winning positions into strength. But, of course, I’m talking about firms and institutions that trade with significantly more capital than retail traders when I say bulls.

Bottom line, this creates selling volume in markets.

By buying SPY Puts (betting against SPY), my goal is to participate in that selling volume; make sense?

It’s true; I’ve been called crazy over seasoned for betting against markets at all-time highs in the past. But, in my opinion, only my P&L can call me crazy or seasoned.

You’ll have the opportunity to study my all-time high 101 technique, but let’s cover today’s economic calendar first.

A headline including “Fed Chair Jerome Powell” is enough to scare many traders away from certain times in the market.

My goal is always to button up Market Navigator trades of the day earlier rather than later. So by 2:30 PM ET when Jerome Powell, speaks I’ll likely have closed today’s trade of the day in real-time with Market Navigator members.

That’s something I love about the trade of the day. When others may be fearful, more often than not, I’ve moved on with my day by focusing on one high-conviction trade, on one stock, at one time.

I’ll plan today’s potential trade of the day, starting with today’s chart of the day, SPY’s daily chart.

SPY Daily Chart

Yesterday’s closing price of 461.90 is currently a short-term resistance level.

As a trader, I don’t go long (buy SPY Calls) into resistance, and I don’t go short (buy SPY Puts) into support. Therefore, as long as SPY continues trading just below yesterday’s closing price of 461.90, I’ll be interested in trading SPY to the downside today.

I’m heading over to act on today’s trade of the day with Market Navigator members, but until next time, I’ll leave you with Monday’s edition of SPY Daily, in which I addressed all-time highs 101.

 

Think simple,

Davis Martin

 

Author:
Davis Martin

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