Today is what I call a bloody falling knife

Look at that BIG RED BAR slicing thru the low of the last 20 days with high volume to boost.

SPY_Daily

With a bloody falling off the cliff  kind of momentum, I can only say tomorrow is not a pretty sight if there is not a bounce to be seen.  However, there are supports from the previous three walls SPY has broken through around the $146 – $148 area.

If there is no bounce tomorrow, I’ll continue to cut out swing positions to reduce loss.

There is no reason to have a majority of your money ties up in stock if the market is showing a violent turn.

I’m currently 47% cash and will raise it to 60% if the knife continues to fall.

Remember, the more cash you have, the more stocks you can buy back cheap when market starts to turn.

Just my 2 cents.

Trade well!



Categories: SPY

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