Trading Journal #25
08:32 am: “Futures mixed to flat early morning after yesterday’s big reversal sell on FED Powell speaking. From the last couple of Mr. Powell ‘s speeches, we know that they will do “whatever it takes” to bring inflation down, even if that means recession ahead, so manage risk wisely.
08:33 am: “Morning focus on TSLA slightly green this morning to see if it holds 300s or not. AAPL and Semi’s on watch for any clue if buyers step in or not. TLT yesterday had a big reversal following the FED, so let’s see if it holds 107+ or not.
Morning Trades: I started the day looking for main focus on TSLA as I said at 8:33am, so I took shorts using some Puts for great cash flow. I tested the waters with AMD calls but got stopped and also faded a bit GOOGL with some PUTs for nice cash flow. I saw bull flow on PINS and also made nice profits.
Losses review: I got stopped on AMD and took the loss but stops are there for a reason, so I’m good with that.
Key Takeaways: Oversold can remain oversold for longer so basically don’t fight the FED when their current mandate is bring inflation down by doing “whatever it takes”.
Look Ahead: Market is pretty much oversold, so shorts should trim gains on the way and adjust stops in my opinion. Looking for some possible bounces to clear oversold conditions, so staying open minded.