Buy Alerts and the Facebook Flush | Smart Chart Investor

Many of you have been with me since I began providing research and buy/sell signals in 2011. As you know I have been recommending staying long the S&P 500 index for the past seven years. My most recent SPY (S&P 500 ETF) recommendation was to buy more on June 28th at support (269). Price has since popped about 5%. Price is up 136% from my first recommendation. Current price action is still bullish in spite of Facebook getting its face ripped off today.

By the way, hold Facebook (FB). It had a price “adjustment”…down 20% right into some good support. We are still up almost 40% from my recommendation. This might be an opportunity to add to FB if 175 can hold.

Facebook Inc (FB) daily

The past few days of SPY price action has pushed up and through resistance with very little selling. The next level to be concerned with is the all time high from January this year which is less than 1% higher. Continue to hold and prepare to increase exposure.

SPDR’s S&P 500 Trust Series ETF (SPY) daily

I have looked at every chart in the S&P 500 index and have screened for the following:

1. Strong multi year uptrend.

2. Out performance of S&P 500 index from 2018 lows.

3. Consistent higher highs, higher lows and new highs.

Currently, there are 25 names on the list so I am releasing only five at a time over the next few weeks. I recommend 1/5 position size as entries are all well above support. If price corrects in to support in the future we can increase position size. I normally don’t recommend buying this far above support but these charts are just too compelling.

Please be aware of your risk as usual. The Facebook flush today was highly unusual but with that said it’s why I lean towards owning ETF’s; I can drop an egg from my basket without losing the whole lot. And, in my humble opinion, I don’t think the FB flush is contagious.