Trading Journal #32
08:40 am: “Futures green to start the day, week, new month and quarter. Last 3 quarters were down, so let’s see if we have an oversold bounce that holds but staying open minded for the last quarter of the year
08:41 am: “Morning focus on TSLA gapping down this morning and see if it bounces up for a quick trade. Semis have been heavy but keeping it on watch. SPY IWM QQQ as we enter the last quarter of the year, watching for possible new flows.
Morning Trades: I started the day fading IWM with PUTs but when I saw bull flow into Semi’s I closed IWM short for nice gains and flipped long into AMD where I locked nice gains also. I tried to catch the knife on TSLA but as I did not see it follow through I closed basically flat. I also tried to fade AMZN but stock printed a higher low so I closed the short and flipped long with Calls that gave nice cash flow. Before lunch I also faded IWM again with PUT scalp for great cash flow. Overall a great trading day.
Loss review: I took some losses on AMZN and IWM shorts but was able to get my money back and way more with AMZN longs and on IWM later short, so happy with my risk management.
Key Takeaways: New quarter can bring new flows, so important to track money flows and stay open minded for possible short squeezes up from lows to clear oversold conditions.
Look Ahead: Nice move so far on the first day of last quarter with some new inflows, but one day does not make the trend. We are still in a downtrend inside a bear market, but I will be looking closely if we can take out last week highs for bounce up continuation, OR last week lows for bear case continuation.