Trading Journal #16
08:33 am: “Futures green to start the week and bounce from Friday lows. So far an inside day with prices between Friday high/lows so no edge and no follow through continuation to Friday’s big reversal down. We are still below key levels and the market is still broken, so staying open minded for what we may see next.”
08:34 am: “Morning focus on Tech to see if it holds an opening print or not. Using Friday highs/lows as key resistance/support for the day. IF stocks not able to hold above opening print, looking for possible green to red moves but lets wait to see.“
Morning Trades: I started the day by shorting QQQ at 9:31am with P295 as I was seeing yields and volatility skyrocket up so I basically looked for a green to red move. I locked in great gains fast and I took some AMD Calls to test the waters on possible bounce, but when I saw getting rejected near 81, I closed the AMD calls and flipped into AMZN short with those PUTs giving more cash flow. As the market was getting oversold and after seeing some shorts covering, I locked gains on my shorts and scalped long IWM Calls as I kept adding size and rode it all the way into Friday lows for nice gains. In less than 2hrs, locked all my gains and done as I hit the targets for day and week.
Losses review: When I start seeing AMD fading, I was able to close it avoiding the loss and flipped to shorts what paid nicely.
Key Takeaways: Traders should look for clues to figure out what’s next move. Today, Yields and Volatility gave the clues, tomorrow can be any other stock, so you need to stay open minded for any possible scenario.
Look Ahead: Market is very oversold (oscillators hitting levels from March 2020 pandemic lows) so it’s hard to short red and traders should avoid it. I am looking to scalp longs on short covering and bounces to clear oversold conditions, and to fade it once we hit supply zones, so basically look-left on your charts and stay open minded for what may come next.