Market Should Recover From Early Decline – I Am Taking Profits – Clean Slate For 2015

Posted 9:50 AM ET - Yesterday, stocks were not able to rally. The market flat lined and the year-end rally has stalled. I don't like this light volume environment so I am heading for the sidelines. I want to start 2015 with a clean slate. The S&P 500 is down seven points before the open and Greece is getting the blame. This news was out yesterday and I believe we are just seeing a light round of profit-taking. Stocks are poised to open lower, but they should be able to grind back throughout the day. I will be looking for a better exit point this afternoon. If we make a new low for the day after two hours of trading, I will exit my positions earlier in the day. I'm not bearish, I'm just bored and I want to take some time off. This is a low probability environment and two weeks ago we saw a nasty decline after a low volume rally. Official PMI's will be released on Friday and as long as they are close to the flash numbers, we won't see much of a market impact. Trading volumes will increase towards the end of next week. If the market stages a nice breakout, I can always get back in. If you are inclined to stay long, raise your stops. If you are trading SPY call options, use SPY $207 as your stop. This is been a great year and my trading system is clicking on all cylinders. 2015 is shaping up nicely. We could see a melt up and lots of volatility throughout the year if credit concerns escalate. Wishing you and your families a Happy New Year! . .

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