January 17
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Trades:
Trades Taken: 1
Trade Plan
Plan: Clean trading through morning session yesterday before the afternoon sell off. Gap up in premarket, then a straight squeeze into 8:30. We’ll see where we open in an hour, but should have a wide range for triggers today.
Watching SPY trend for a short, up near 600. A dip into yesterday’s highs would get be long (on either market). QQQ short isn’t as clean as we are testing/trying to break trend at 9:15 am. It’s been a very clean week during morning sessions, looking to capitalize on first move and let Friday volatility do it’s thing.
Result: Dip out of the gate = looking for calls to plan. I went with QQQ 519 calls for a stellar first reaction trade thank to proper averaging and buying heavier as we enter proper entry area. Green and done on the day before the market even decides where it’s going today. REACTIONS NOT REVERSALS! 10 for 10 on the week.
NOTE: QQQ daily chart showed it went down to the 512.95 gap fill, but look at the intraday 5 minute chart. It did NOT test that level, not even close. This is called a phantom tick. The daily chart will likely remain the way it is. Just a small detail I wanted to point out.
January 16
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Trades Taken: 2
Trade Plan
Plan: Very clean action yesterday. Now that the lower trends have tested, that’s not necessarily the trade I’m going for. Much like proper price action on dips and rips, it’s the first test of a trend that matters in the way I trade. We just got that yesterday on BOTH markets. Markets still have an upper trend to test, could very well happen this week. A gap up this morning, both markets tapered off and tested previous close and pushed for another reaction.
Previous close could present an opportunity if we have enough distance. Action could also fail previous close this morning, and a retest from the underside would flip it to resistance. Where we open in relation to the previous close will determine how I make that approach. Moving averages is where I’m looking long if the previous close doesn’t hold, will likely line up near yesterday’s lows on SPY.
Result: Markets with a dip right into previous close. I went with QQQ 516 calls for a killer first reaction trade. Doesn’t get much cleaner than this. Markets broke previous close and headed straight for moving averages. I only got a starter on QQQ 514 calls before it ripped right back up to previous close to test it from underneath. Sound familiar? I mentioned previous close could get tested on either side this morning due to proximity. I paid out quickly as it’s hard not to when you nail a low like this.
January 15
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Trades Taken: 2
Trade Plan
Plan: Yesterday’s premarket spike was PPI news, today a push in premarket due to CPI news. QQQ pushed hard and fast right into 515.27 gap, SPY right into the 20 ma. Major trend test come back into play after pushing from lower lows. A few trends based on how you place the trend line. The lower trend line up very well on both markets with other resistance. The longs will be a bit more tricky this morning un less we sell off a bit during premarket. Moving averages (5 and 9 on the daily) will be pulled up nicely with this gap up. Proper longs would be yesterday’s highs
Result: A slight dip in markets to start the morning. I waited for QQQ to get close to trigger, only got a starter/feeler trade on QQQ 510 calls as we were still a bit from entry, turned out I sniped low entry here, nice. Markets pushed and broke highs, I started to average in on SPY 594 puts ready to hit it harder if we continued to push into proper test at 593.55. Got a nice pullback and very happy with the result of playing this peak with no greed. Nice way to get in and out on this volatile CPI day.
January 14
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Trades Taken: 3
Trade Plan
Plan: Clean trading yesterday morning, even the remount long in the afternoon was a clean move. A gap up overnight, then steady sell off, then 8:30 PPI numbers spiked the market. Days like today (PPI) and tomorrow (CPI) I tend to be a little more cautious on entries and try not to start too early with a feeler/starter size. How and where we open will be more of an emphasis this morning.
For the early short trade, I want to see where the moving averages are on both markets. Getting past moving averages, both markets have gap fills (SPY 589.49, QQQ 515.27). If we hold above previous close in premarket, I do like a first test of that for a long out of the gate, resetting at yesterday’s pivot area, which is also the end of day vwap.
Result: A dip out of the gate for the markets. I sniped lows with a starter entry on QQQ 506 calls for a fantastic first reaction here, nailed the first move. Markets pushed nicely. I then entered on QQQ 512 puts as we neared entry area. Unfortunately I “fat fingered” my exit and got out all of it instead of just a piece. It happens, stayed disciplined and did not re enter on this. Markets came right down for a proper long entry area. Again, starter size very quickly for a scalp here on QQQ 505 calls. Doesn’t look like much, but 10% base hits add up, and I don’t need the market to make a big move. Reactions, not reversals!!!
January 13
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Trades Taken: 2
Trade Plan
Plan: A clean trading day on Friday. A gap down this morning, I like the set up, but still 30 minutes to go in premarket. Two ideas on SPY short, first is low of day into previous close. If there is distance at the open and we pop, strategy says to take that. If it fails, remounts the previous close and pushes, I really like a test of moving averages on a hard push. This also lines up with 584.52 area that, if you look left, is a very nice range test. For the long, I like 573.74 area, but the stronger support is lower starting at 569.81 gap fill. For QQQ, I prefer the long down at 497.42 area. The short is similar to spy with a range at 507 area, with a reset short up at moving averages (511ish).
Result: A slight dip out of the gate on QQQ, caught orders going into 500 area wanting to average into 497.42 level. I went with QQQ 497 calls , wanting to average but got the payout within minutes per usual. Nice early trade. Markets set ranges, both working well near first short level marked (Friday’s lows). I did not take the first short, though it worked well. I set an alert for breaking higher that 578.55 on SPY, wanting it higher into previous close for a short execution. I started in on SPY 581 puts as we pushed past morning highs, got out on retest of lows as it could have held and pushed. Part of being a consistent trader is taking what is in hand at your targets. Two for two on the week with some well executed base hits.