January 31
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Trades:
Trades Taken: 1
Trade Plan
Plan: Clean trading again yesterday. Gap up on the markets, and just like that SPY filled the gap from last Friday. SPY has been bumping it’s head on the 608 gap most of premarket (leading into 9:00 am EST). I would like a squeeze into 609.75 for a short, and ad dip into yesterday’s close for a long opportunity. QQQ I like 529.63 as it still hasn’t filled that gap yet. Previous close, with moving average support, would be the long play. I would be very content not getting a trade off today as it’s a Friday AND last day of the month.
Result: Markets popped for a few minutes to start the day, I did not take first test of a short. I waited, watched the short work, then watched a test of morning lows work. I put in a starter on QQQ 530 puts back at morning highs, paid out on first flush. Got back in as we squeezed past highs, pushing closer to proper trigger. With another add, had a nice average on QQQ 530 puts (2) and paid out on remount of 528.15 gap lip. Great trade to end the week and month!
January 30
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Trades Taken: 2
Trade Plan
Plan: Clean action yesterday, even with FED decision staying within the lanes. Usually you see a bigger reaction. A gap up this morning with 8:30 numbers giving some initial positive reaction. First glance my favorite play would be QQQ long into moving averages and previous close, a lot of support and touches on the daily chart there, but I need some distance. QQQ short 528 into 530 gap fill. SPY previous close for a long, could react sooner based on moving average location. SPY 605.52 area is interesting for a short, but I like 608 gap fill better.
Result: A dip out of the gate, I go with QQQ 521 calls into first level, wanting it down into previous close. A textbook “buying into the level” and paying out on first push. Proper averaging yet again gets me green within minutes. Peaks and valleys, stop hoping and holding. Nail the dip, sell the rip.
Markets pushed on on the first reaction, sending SPY into first area for a short. I got a starter on SPY 608 puts, wanting it higher into 608 gap fill. This entry ended up being morning high on the move. One long, one short, both at predetermined levels for base hits.
January 29
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Trades Taken: 2
Trade Plan
Plan: Another clean day yesterday, QQQ pushing into moving averages. A large gap down (on news) Monday morning, markets have made up quite a bit of that in just two days. Another planned market earthquake this afternoon with FED rate decision at 2:00 EST. As always, I’ll be done well before that!
QQQ premarket high is also 525 gap fill area. Getting past that is 528 gap lip into gap fill of 529.63. For a long on QQQ I like a first test of 518 and moving averages (the 20 and 50 ma on daily). The move I would really want today would be a long off of previous close and moving averages (5 and 9) on QQQ. As of 9:00 EST, the distance is not there, but QQQ is trying to base there. Would need proper distance for that.
SPY I like premarket high for a short, is also 605.50 range, reset at 608. I don’t like the long as much on SPY, not as clear as close moving averages may make it messy. With how volatile this week has been, I would expect a move past ATH or a severe dip after FED meeting this afternoon.
Result: Markets dipped out of the gate. As I mentioned, previous close on QQQ was a tad bit close. I waited for a break of that, got a starter in on QQQ 518 calls, added on weakness to play the average game, and got a nice push right through the 9 ema on intraday giving a peak opportunity, a fantastic time to take my profit. Didn’t even get a proper trigger, but spot on averaging allows me to be green in a move no matter what. Was fully prepared to average more into a proper trigger.
I sat back and watched SPY hold lows, while QQQ broke further towards 20 and 50 moving averages. Went with QQQ 517 calls on starter position after breaking lows. Absolutely nailed the wick on this candle for a near 10% move within a minute (QQQ 517 calls zoomed). Sniper accuracy and patience here on the entry.
I can’t tell you how many times my “starter” positions end up being the low of a move (or high of a move for a short), and don’t give opportunity for a PROPER add. Sticking to first targets, no matter what my position size is, has gotten me the consistency I have. A rule that I have is I exit my entire starter position, no matter how many contracts that may be, on the first push into first target/exit. Most times that is 10% right into 9 ema on intraday chart. Can you walk away from a potential big winner? In other words, can you conquer greed?
Expect major volatility at 2:00 EST with FED announcement.
January 28
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Trades Taken: 3
Trade Plan
Plan: Nailed the morning short yesterday. Markets with a slight gap up, QQQ didn’t hold it as it’s just over previous close with 10 minutes to go. SPY I like 603 gap fill, which should also be the 5 ema on the daily chart. Yesterday’s close is there for a long, but quite close, I like 596 area better. QQQ I like yesterday’s open/lows for a long, high of day for the short.
Result: A dip out of the gate = I go long with calls according to plan. I started with QQQ 511 calls, averaging into this one. It paid hard and fast as soon as the liquidity and orders came in, allowing for a base hit right back to the underside of the previous close, great trade! I also got a starter on SPY 596 calls as we had great speed and distance out of the gate. This one also paid nice and quick, got all out on first push. Data from IBKR is not showing for first several minutes of the SPY trade, that happens time to time.
Markets pushed hard right into proper short triggers. I waited and took QQQ 521 puts once we broke the first set of moving averages (20 and 50 ma), and started in, wanting QQQ to push to 5 and 9 ema on daily chart (pink and orange moving averages). Fantastic averaging again and this trade works well, timed with SPY short into trigger. Again, I don’t need much of a reaction when averaging is done correctly (check out QQQ 521 puts zoomed for accuracy of the entries). I don’t stick around for big moves. I get the 10-20% move into first target and move on.
January 27
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Trades Taken: 2
Trade Plan
Plan: Significant gap down this morning, markets plunging, QQQ giving up most of it’s push over the last 9-10 days. I will set levels this morning, but not interested in trading this action. Keep in mind, I aim for consistency and base hits. While the market will likely respect the levels if they test today, I have better odds waiting for more relaxed price action. Notice how small the risk/trade boxes look compared to the candles. This shows how wide/risky the action is, even in premarket.
Result: After a move up for several minutes, I decided to play the move, even though we were wide. I went with SPY 602 puts for a quick scalp. Waited, studied price action, then pounced on SPY 603 puts as we broke morning highs as squeezed right into 9 ema on the daily. Playing the puts here very well for a nice first reaction.
Don’t need much when you are looking for reactions and not reversals!!! Going 2 for 2 on PUTS on a strong green morning candle. That’s what I’m talking about!