Now just hold up one second! I thought this was a religion FREE zone!
Yes I'm sure that's what you're thinking right now, but just stick with me for a minute and you'll catch my drift...
Alright, so y'all know how several different people can be looking at the EXACT SAME Bible verse yet have ten different interpretations all geared to fit their own ideas and agendas?!
Is it any different with stock charts?
Specifically the SPY chart... Why is it that for the past few days I'm seeing the SAME CHART on the Stocktwits SPY newsfeed, YET everyone has a different interpretation. I mean it's bullish this or bearish that and ascending triangle this or descending triangle that and overhead resistance this or downside support that. I mean come on people, we're all looking at the same chart right?!
Funny how we find a way to frame things so that it fits our thesis on life, or in this case our thesis on WHERE the SPY is going in the near term.
So... good analogy? Yes? No? Maybe...
Anyway, my question about life right now is simple - where in the heck is this dang SPY going? I've got a May 188/189 credit call spread in play right now. I set this trade up back on April 4th, right after the jobs report hit. Within a week I had the opportunity to close the trade and book close to $150 of the original $255 premium I captured. BUT... but, in an effort to stop cutting my winners short, I kept the trade alive. Oh boy I'm regretting that decision!
Now, it's very possible I'll have to take a small loss. There is nothing I hate more than watching a winner turn into a LOSER!!! But I refuse to be stubborn and get stuck with a MAX LOSS. If I'm wrong, then I'm wrong and I'll admit, but I still believe we're going to see a nice pullback this week. So I'm holding my SPY call spread for now, but watching it like a hawk!
What do you guys think?
I'd love to hear your thoughts, please shoot me an email, firstname.lastname@example.org or simply comment on this post!