Trading Journal #37
08:40 am: “Futures mixed to start the day. This week we have earnings season kickoff with financials and also a busy week with FOMC minutes on Wednesday and CPI numbers on Thursday, so the market is waiting for those numbers to come. IF inflation comes hot, the market will probably rollover into new lows as FED will keep the green light to keep the mandate intact on raising rates.
08:41 am: “Morning focus on Semis as they keep getting destroyed. IF Semi’s selloff pause, that can give clues on possible oversold bounce. AAPL TSLA AMZN also on watch for clues on buy/sell pressure and if the market can find a short term low OR we keep drifting lower before a decent bounce.
Morning Trades: I started the day fading IWM with Puts that gave a nice cash flow on green to red moves. After that, I scalped long TSLA on day 8 down, for a red to green move and when the move stalled I locked my gains. I also faded AMZN with Puts for a green to red move and locked some nice gains. Very happy with today’s trading plan and risk management.
Loss review: No losses today, so happy with risk management.
Key Takeaways: With Volatility above 30+, you take trades and stay flexible for either long and short. Don’t hold the bag for too long.
Look Ahead: This week we have FOMC minutes on Wednesday and CPI numbers on Thursday plus earnings season kickoff, so manage risk wisely and stay open minded.