Trading Journal #39
08:36 am: “Futures slide from premarket highs after PPI numbers. Today we have FOMC minutes at 2pm and tomorrow morning CPI numbers can trigger the next move so manage risk wisely until then.
08:38 am: “Morning focus on AAPL TSLA to see it holds above yesterday lows OR fade into this year lows. SPY, IWM, QQQ, Yields and Volatility also on watch going into FOMC minutes at 2pm and CPI tomorrow morning.
Morning Trades on AAPL IWM TSLA and GOOGL: I started the day fading AAPL GOOGL and IWM with PUTs but as not much follow through for downside, I closed and started looking for the other side of the boat.
My focus came into longs on TSLA (10 consecutive down days was a bit too extended for downside so was looking for a bounce) and IWM (yesterday printed a reversal buy day, so was looking for possible day 2 and red to green).
I ride IWM and TSLA calls several times during the day but locked my gains as the market is not holding the momentum for too long.
Loss review: I cut PUTs fast as not much follow through for downside, so happy with my risk management.
Key Takeaways: Look for clues and divergences… connect the dots. Today was volatility fading from highs plus SPY QQQ holding the green that helped the morning trades.
Look Ahead: We are going into CPI numbers tomorrow, so really anything can happen. A hot CPI number can bring the market into new lows but a lower number can trigger a big short term oversold bounce, so with no edge, I stay in cash and with an open mind going into tomorrow.