Market Update June 12th

Good Morning,

It was quite a day for the market yesterday as we saw an island reversal on the SPY and a pull all the way back to the sma200 and the $300 price level. Hopefully everyone has been paying attention to our warning to keep position sizes small with the market rally as extended as it was. We were also fortunate to be diversified a bit in our positions, and we were able to take some profit in our GOLD calls yesterday and also made some nice planned adds to some biotech catalyst trades. This morning in the premarket we are seeing a bounce in the major indices, and in the case of the SPY we are bouncing right up to the sma20 which will be a big spot to watch today. We will also need to keep a close eye on the VIX today which is down a bit in the premarket but is still at a very elevated level after one of the biggest spikes in history yesterday. Heading into the weekend with this volatility is not going to be the best time to start any new positions, so my focus today will be to manage existing positions and possibly add back some of the GOLD that I sold yesterday and also possibly add some AZN per the plan depending on how the market holds this gap up at the open.

About Traders Path