February 28
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Trades:
Trades Taken: 1
Trade Plan
Yesterday: Another big red day for the markets yesterday. Six days in a row of red for markets, and each day I’ve traded calls (needing the market to go up) and have been very successful with nailing the reactions. Out of four days this week, the action has only “respected” an inner level test once (on Wednesday). Too many focus on where the market is going, or where it will end up. Yesterday I took a short on SPY out of the gate, and QQQ long into the previous close for two solid base hits.
Plan: A decent sized sell off this week, 6 red days in a row for the markets. Markets initially gapped up, but now only slightly above the previous close as of 9:05 EST. QQQ is nearing the 150 and 200 moving average, which also lines up with a very valid range in you zoom out and look left on the daily chart. I like the entire area between 492-500. Now, that’s a wide range when my risk is usually 1 point. Narrowing that down to two gap fills in that range at 496.57 and 492.21 for the long on QQQ. SPY down at 582 and 575 area for the long, if it breaks previous close. Keeping my eye on the end of day vwap for the short.
While many at this stage start chasing the short (wanting the market to go down), I recognize valid, heavy volume support zones coming in to play, putting my bias on a long opportunity if it presents itself.
Result: Yet again, another dip out of the gate. QQQ long was my favorite in premarket, and that’s the direction we went. I got involved with QQQ 496 calls for a nice trade. Just as I was about to hit another round of buys, price action exploded to first target in just a minute, allowing me to pull profit right into first target. An hour later, and that trade is nearing 100% return with plenty of potential to go if we make it up to short triggers today. While I was out on the first move as always, seeing I bought low of morning session is always a nice feeling.
Checking back at end of day, and man were QQQ levels on point today. Always focused on morning move, first touch. But seeing the consistency of afternoon respect of levels when tides change is always reassuring. Happy with the base hit this morning to end the week.
February 27
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Trades Taken: 2
Trade Plan
Yesterday: A small dip to start yesterday, I took advantage of calls on both markets. Also took the first proper short try on SPY, all by 10:00 EST.
Plan: Bit of a back and forth premarket with numbers this morning. A gap up, providing both markets with an opportunity for a long into previous close. For QQQ, it’s already testing yesterday’s high of day in premarket, so that is too close. I would want a move higher into 525.60 area for the short. If SPY gets above 598.66 area, likely see a move up into 602 area.
Result: A move up on SPY out of the gate, I get in on SPY 600 puts to give me room to the 9 ema on the daily. Didn’t need that runway, as the trade worked very well and I paid out fully into morning range. Price fell into previous close for both markets, I went with QQQ 514 calls for a quick one here, nailing the game of peaks and valleys before the failure of the previous close. Two great base hits to strategy this morning.
Checking on the market after the day is done, and quite the sell off. One characteristic of how I trade is that I take advantage of the first 30-60 minutes, and then move on with my day. While I may miss plenty of home runs, I’ll gladly take predictable base hits on a daily basis.
February 26
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Trades Taken: 3
Trade Plan
Yesterday: Another red day in the markets yesterday, but notice the bounce, look left. Key ranges tested on both the market and stocks overall. While I missed the morning play, I captured two longs on TSLA and AMZN late morning as they were testing extremes. Two great plays, AMZN really went on a run.
Plan: A gap up overnight and this morning. Previous close on both markets line up with end of day vwap for a long, but I need distance in to that level. Wide risk to yesterday’s lows, so I will have to size appropriate considering we’ve been generating volatility past few days. Short plan would be 599 area on SPY, moving averages SHOULD be right above that for protection. QQQ a little wider on the short, gap fill at 519.87, reset up at 523.52 moving average area.
Result: A move down in the last bit of premarket, a trend lately. First few minutes of open was down, I get involved on both SPY 594 calls and QQQ 513 calls as both markets approached the previous close. Two solid trades to start the day. Markets moved up from that point, heading into premarket highs, which is where I got starter size in on SPY 599 puts, and paid nicely on the predictable pullback.
February 25
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Trades Taken: 2
Trade Plan
Yesterday: Another sharp move down out of the gate yesterday. I was able to catch the quick short on SPY (was high of day) for a scalp, and a long on QQQ at previous close. QQQ sold hold from that, head bump underneath later to prove weakness. Gap down on the futures over night, now markets hanging around previous close.
Plan: Watching end of day vwap area (where the vwap closed yesterday, the average price) for the short on both markets for a first level. Outer level shorts would be moving averages again, which should be around yesterday’s open. Premarket lows for a first try long.
Result: I missed the morning move, bus stop duty! I came back to see SPY and QQQ work well at first long, then a failure hard of first level. At this point, no trade, but alerts starting going off on other major stocks that I watch and have levels for, on extreme tests. I got involved on both TSLA 300 calls and AMZN 205 calls for a pair of fantastic long trades into level. Same style of trading that I do on QQQ and SPY: support and resistance, speed and distance, volume zone, first test. A major difference is the time level that I follow. For SPY and QQQ, while I use the daily chart, I also use a mixture of the 1 and 5 minute chart. Other stocks, I tend to watch the 10-30 minute chart to focus on a wider reaction, which does indeed come with extended risk. Notice how much the premium is on TSLA specifically.
It’s not often I trade outside of SPY and QQQ. Today was a day where alarm bells were going off, and the plan called to get involved on the long side, taking advantage of fear right into valid support levels. Also note where SPY and QQQ bounced on outer levels, same time of these two trades. Another key that we were likely at a support area.
February 24
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Trades Taken: 2
Trade Plan
Plan: Decent sell off on Friday. Markets cooperated with a reaction at first level in the right time of day (before/around 10:00), then sold off hard. One of the things I’m asked the most is if I can just trade my levels all day. This is one of those days I like to point to and show I went 3 for 3 on CALLS (needing the market to go up) on a big red day in the market. Time of day and first reactions have everything to do with that (sprinkle in some skill too). While levels can tend to work outside the morning move/reaction, I aim for consistency, getting that base hit everyday. The morning session is where I find it.
Gap up from the previous close this premarket. Moving averages above for both markets for the short, notice the level is pink to highlight the 9 ema. NOTE, moving averages are dynamic, they move. This level may not be perfect due to the distance we moved on Friday, I watch the daily chart to get a better idea once the market opens. The long play would be previous close on both markets. I’d argue the long gets a little tricky under the previous close
Result: A quick pop at the open, I snagged SPY 606 puts with a starter, nailed the morning high, pulled the entire position off for a quick 10% to start the week. We dipped into long triggers, I executed, averaged and paid on first reaction at level on QQQ 525 calls and got out at first target darn near perfectly before the failure. FIRST TEST of level is crucial. Again, done on the day with first reaction before 10:00 EST.