Trading Journal #21
08:38 am: “Futures took a dive after CPI numbers came above expectations raising odds of a 75bp hike at next week’s FED meeting, so staying open minded for what may come next.
08:39 am: “Morning focus tech has got hit pretty hard after CPI numbers and see if we have a bounce in the first 5-15min of the session or not. Market very volatile, so manage risk wisely.
Morning Trades: I started the day looking for an oversold bounce and took some AAPL Calls that gave some cash flow but when action stalled at 160s, I closed as market selling pressure was still high. I took some PTON calls on bull flow but action also stalled so close. Tried to test the waters with small AMD AMZN calls for the bounce, but no follow through and I closed. The biggest cash flow trade, came from RIVN short from green to red that I closed for nice gains.
Losses review: I took small paper cuts while testing the waters for bounce, but it was a small bet and also I cut losses fast, so that was nice risk management.
Key Takeaways: Going into binary events as CPI numbers today, traders cut risk and look for clues. Yesterday VIX and Bonds action gave clues the market was cutting risk, so you respect price and at least also cut risk vs add.
Look Ahead: Today CPI numbers raise the odds of a 75 bp rate hike from FED next week, so that’s why tech stocks got beaten down heavily. The big question is if today’s move was enough to incorporate the next FED action or not. I am using today’s lows and highs on day as key levels for bear/bull case scenarios. Taking trades for now.