Trading Journal #20
08:43 am: “Futures green to start the week and ahead tomorrow CPI numbers. Everyone is waiting for CPI numbers in order to try to anticipate next week’s FED decision if 50 or 75 bp rate hike, so risk management suggests reducing risk going into these events and that’s what I’m doing.”
08:44 am: “Morning focus on most big tech names gapping up, so looking for opening prints if it will hold and squeeze higher OR fades to fill this morning gap. AAPL AMZN MSFT, Semis and TSLA looking for possible signs to measure bull/bear strength.”
Morning Trades: I started with AMD Calls looking for red to green moves but when I saw it stalled, I closed AMD and flipped into IWM short for some cash flow. After that I played the AMD scalp long from 8MA but as stock failed at 85s, I closed and loaded back on IWM shorts and also META shorts as stock was getting too extended. I locked very nice gains on both scalp shorts and locked all my gains as I don’t like to risk trades into binary events as CPI numbers.
Losses review: I was able to manage and close AMD before going for a loss and also IWM short was a nice hedge, so I like the way I handle the trade.
Key Takeaways: When a move is getting extended to the upside and we go into an event, as CPI numbers tomorrow, traders reduce risk and start looking for possible fade or move into the other side. I always cut risk into binary events where anything can happen.
Look Ahead: Market is waiting for CPI numbers in order to try to anticipate next week’s FED decision if 50 or 75 bp rate hike, so I am not “flipping coins” to try to anticipate where market is going next. We had a nice 3-4 day bounce but oscillators are not overbought, neither oversold… we are basically Neutral, so it means the market can go either way.