We Could See Selling Today – FOMC Minutes Could Spark Profit Taking – Be Patient

Posted 9:30 AM ET - Yesterday the market started the week off on a positive note and it drifted higher during the first two hours. We were able to catch some nice longs in the chat room before the action died down. This morning, the market is giving back most of those gains. There might be some nervous jitters ahead of the FOMC minutes tomorrow. That is really the only news worthy event this week. Brexit was a non-event and labor conditions are improving. The Fed's tone was a little more hawkish and the “hot” jobs report will add to the tension. Some investors will worry that the timeline for a rate hike will be moved forward once they see the comments and that should spark some profit-taking. The market is wound very tightly and the potential for a big move looms. Daily volumes are down 50%. My guess is that the next big move will be down. August and September are historically weak months. As long as support at SPY $217.50 is intact, I will focus on the long side. All of my activity has been day trading. I am just grinding out daily profits and I'm able to find five or six good trades each session. I am starting to look more closely at shorts. There are some very nice setups where stocks are compressing at the top of the range and they have not participated in the last leg of this market rally. When they break horizontal support at the bottom of this range they will be excellent shorts. My comments have not changed much day-to-day because there is nothing to report. Politicians and bankers are taking time off and the news is extremely light. Make your money early and call it a day. Trim your size and reduce your trade count. I have a systematic approach to trading and my system delivers the best stocks to us. Come check out my chat room and take the free trial. I will prove that we make money every day. If you are caring overnight long positions, make sure to be out before the FOMC minutes tomorrow. In this light volume environment anything can happen. Make sure that support is established before you get long today. We could see profit-taking ahead of the Fed minutes and buyers will pull bids if they see this. I won't know until I see the price action. . .

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