August 2
Stock charts provided by Tradingview.com
Entries charts provided by IBKR.com
Trades:
Trades Taken: 1
SPY
Plan: Since the FED meeting earlier this week, it has been wide moves as expected. With an already significant gap down, numbers at 8:30 caused even more volatility. Combine that with it being Friday, will trade minimal size if at all today. Notice how the trade boxes look smaller than usual? They haven’t changed. What’s changed is the range in the market.
For SPY, I like the 100 ma and 528.50 gap area, but pm low area may hold. I may take the closer pm level marked depending how we open, but prefer the lower level. For a short, I like previous low of day and previous close.
Result: SPY dipped first, but not into area of my interest, then retracing to first short area, but I was already executed on QQQ.
QQQ
Plan: Same as SPY in terms of wide ranges. I’m watching yesterday’s low and close for a short, and for a long I’m watching the areas marked and need SPEED into them.
Result: QQQ dipped right into first level and area of interest. I took QQQ 448 calls and paid out into intraday 9 ema and VWAP. Beautiful first reaction. Price moved to premarket highs (matching the reaction of SPY first short level).
August 1
Trades Taken: 3
SPY
Plan: For SPY, looking for a pop into yesterday high of day, pm highs, and 553.80 gap fill for a short. Three spots of protection within this trade. For a long, I like a dip into the previous close.
Result: My attention was on QQQ at the open, but SPY opened and pushed into short level and would have produced a nice trade if taken and managed properly. See below for trades on QQQ prior to 10:00.
Lesson: SPY dipped into 547.58 area (moving averages) later in the morning (after 10:00) on a nice sell off. I did take very small size into this with SPY 547 calls, and AGAIN, out on the first move. The price action ended up failing the level, but I’m green yet again because of rules, patience, and discipline. The following should be noted on this trade:
Trade was after 10:00, so much smaller size.
Understanding the intraday action has been “stuck” under the intraday 9 ema, this becomes a target for a long trade. This happened with one green candle. This seems quick right? NO, from lows of that time at 10:49 to the high of the NEXT CANDLE was $1.16 on the STOCK chart. Now reference the premium on the ENTRIES chart and do the math yourself (hint, it was over a 25% move). Did I catch that whole move? No. Do I care? No. I'll take my 10-15%, just like most days!
During steep sell offs, one has to gauge the risk to the next level of support. I take that first reaction every time regarding profit, no matter what.
QQQ
Plan: Similar to SPY, QQQ has a lot of protection of the first short. 475 gap fill and pm high for the short. For the long, I like a dip into the previous close.
Result: I started on QQQ first minute as we were very close to the support level. Check out Checklist prior to a trade to see that I use much smaller size when opening near a level. Started with the QQQ 471 calls and paid out on first move which happened to be yesterday’s high of day, great small trade. We then got a straight move into the 475 gap area before 10:00. I took QQQ 475 puts and, again, paid out of first move.
July 31
Trades:
Trades Taken: 1
SPY
Plan: Another large gap for the market, a trend we are seeing recently. FED decision today at 2:00, there will be fireworks on the charts then, always is. For SPY, the 552.50 area/20 ma is interesting. For a long, I like a dip into yesterday’s high of day, protected by the open and 9 ema. We are opening RIGHT at an area of interest, so unfortunately no distance on the level near open.
Result: Both Markets flash popped into the close level. I realized I missed the long triggers on both while gauging risk. Knowing I missed it, I did not chase it, I stayed disciplined with entries.
I did take the opportunity to work on a short trade on QQQ. See below
QQQ
Plan: The short for QQQ is quite close at 468. Reset trade for the short up at 474 into gap fill of 475. The long would be a dip into high of day and the open of yesterday.
Result: Realizing I missed first directional pick down (which trade plans dictate to go long with calls), I took the opportunity to take QQQ 468 puts as we headed back up to test the 9 ema and 468 level. I used smaller size knowing I missed the original trade plan. We opened right on this level, so there was no distance right at open. The dip into support brought action right back to test high of day and the 9 ema/level.
Lesson: Not very happy with my averaging on this trade. Below shows two entries charts. The one with the green line across the chart shows where my average was. Even though I wasn’t “green” on my first sell, a professional trades the chart, NOT their profit and loss. This took me a while to learn and truly accept. Another example of turning a red trade green, even if it wasn’t my best. Just look how this trade failed after I got out, something you will see consistently with my entries charts. THE FIRST MOVE IS EVERYTHING !!!!!!
July 30
Trades:
Trades Taken: 1
SPY
Plan: If we hold current pm range, I like a SPY for a long into previous close, and a short into yesterday high of day and 9 ema.
Result: SPY moved right into high of day and 9 ema at the open after a bit of hesitation. I entered with SPY 548 puts nearing high of day, and SMOKING the last entry with size right at the 9 ema. Paid out on first push for a beautiful trade right to plan. Done with the day in 15 minutes.
QQQ
Plan: Similar to SPY, for QQQ I like a dip into previous close for a long, and high of day for a short. I like the short better on SPY. WHY? Because the 9 ema on SPY is closer, thus giving more protection in the trade. Check out Checklist prior to a trade to learn more.
Result: Didn’t quite trigger into the short trade, stuck with SPY short as it did trigger. First test of previous close for a long would have worked if done properly. Nice reactions at all levels marked today.
July 29
Trades:
Trades Taken: 1
SPY
Plan: Looking for a dip into previous close for a long, and a pop into the 9 ema and 549 range for a short. A first reaction on the short certainly has protection (9 ema, daily trend, volume area).
Result: Got the dip I was looking for, right into entry area. Triggered with SPY 544 calls and paid out nicely on first move. Great way to start a week and be locked in within 10 minutes!
Lesson: Study the entries chart, do the math! Understand there are opportunities in that “small” move you are seeing. Consistency is key!!! Mindset and perspective are everything, and this is scalable!
QQQ
Plan: Looking for a pop into Thursday’s high for a short. For a long, I like the previous close.
Result: Focused on SPY, but QQQ did dip to start. The short trigger worked extremely well on first move, but I was already locked in on the day with SPY calls.