The S&P 500 has rallied up and stalled…

The S&P 500 (ETF Proxy – AMEX:SPY) has rallied up and has stalled at the highs of its recent range.  I would expect to see this market turn lower and begin to test the bull’s resolve by breaking down below the $200 per share level.  I still am not excited by the light volume and flighty nature of the intraday action, so will remain on the sidelines in this index for the time being.

 

I am worried that the chaos that might result from a Greek exit from the Eurozone could put the US markets back on “crash watch”, so risk should remain high for the time being…

 

 

Chevron Corp (NYSE:CVX) was a disappointment as it violently whipsawed back down to take out the lows before reversing.  It’s right back where the whipsaw started, but the whip took out the trailing stops near $105 per share, again proving why it’s important to take partial profits and aggressively trail stops to make sure you make some money even if the pattern you are trading fails..

 

 

The story from the SPYDR S&P Biotech ETF (NYSE:XBI) is similar to that of CVX.  The stock set up, then offered a chance to take profits off the table as it broke out to new highs, and then whipsawed to take out trailing stops.  While not the profit I expected, it’s nice to not have a pattern failure produce a loss.

 

Again, I feel we are headed into a time of great risk and great opportunity.  All the markets need are a catalyst to produce a frantic rush to the exits.  I am worried about the ability to control risk or get filled should that occur, so will be hyper conservative this month as I wait for this market tension to be released.