Well, things looked a bit scary during the week, and I had several emails asking is it serious? What should we do – get out?
I get that things can look grim from time to time. I really do. But we have to keep our cool and calmly look at the situation. So, what do we see? When we look at the SPY chart we see that we were nowhere near the 10/200 death cross (pink and turquoise moving averages in the chart below). ITM still up over 90% so we are not doing badly at all!
Remember in In The Money how I talked about how traders tend to move with the herd? Well, here’s a prime example. Look at the ellipses in the chart: just this year the SPY has bounced neatly off the 50-day moving average three times!
Coincidence? I think not!
