Trading Journal #27
08:37 am: “Futures red to start the week giving some follow through to last week reversal sell after FED meeting. We are hitting some oversold levels, so shorts should be trim profits on the way and adjust stops to cap gains, imo.
08:39 am: “Morning focus on Tech names to see if able to hold the opening print for an oversold bounce up or not. Eyes also on Yields and Dollar to see if they fade a bit to trigger market oversold bounce or not.
Morning Trades: I started the day looking for an oversold bounce, so out of the gate I got AAPL Calls for great cash flow. I tried some AMD and C Calls but no follow through so I closed. When I saw things stalled, I got short IWM with some PUTs for more than +150% gains and done.
Losses review: I closed AMD and C calls as not much follow through continuation on upside and I did well as those turned red, so I avoided a big loss by cutting my risk and flipping into IWM Puts.
Key Takeaways: Oversold bounces happen, but on bear markets, traders cannot hold the bags for too long as stocks resume main trend down. Take trades both up and down.
Look Ahead: Market is oversold, but oversold can remain oversold for longer and until we see a sustainable bounce that holds the lows, we keep taking trades for now.