New all-time highs are far from baked into the cake at this point. Certainly a possibility & one that I would put decent odds on but I mainly wanted to point out the following: On some trade ideas that I post, I set the final price target where a major reversal or trend change is likely & if/when the trade gets there, I will sometimes reverse it from a long trade to short trade.

On this SPY trade, that is not the case. If we hit the 2nd & final target, at least from what I can see in the charts & other variables right now, we could quite possibly continue to run with SPY going on to new highs. As such, if this trade starts to pan out, one could opt to let it run with a hard stop (to protect profits or at least a breakeven) or place a trailing stop on the trade & let it run vs. closing the position out at T2. First things first, of course, and that would be to see how the markets act this week as they are still in a very precarious technical position. Best of luck on the trade if you are in it.

Don’t thank me yet. Thank me if & when your preferred profit target(s) is hit. ;-)

We’re certainly not out of the woods yet but the fact most are afraid to buy now (just like everyone was in a feeding freezy & tripping over each other to buy in Jan when I was adding numerous short trades), that fact, coupled with the bullish technicals on the 60-minute time frames as well as the fact that as I type, both SPY & QQQ have rallied back up to those key primary uptrend lines on the daily & weekly charts (which would be very bullish if they close back solidly above them this week as I suspect), all plays into this trade.

As with any trade, this one will either pan out or not but as they say, you miss 100% of the shots not taken & so I’m glad to risk losing $1 if wrong to make $3, possibly more as this trade and some of the other recent longs, has the potential to morph into a runner to new ATH’s with a trailing stop in place. First things first & that would be see a big green weekly candlestick printed by the end of Friday (and no big funds blowing up this week).