Trading Journal #8
08:40 am: Futures are basically flat-to-green to start the day as we hit oversold conditions on Monday and now the market is clearing those oversold readings. A bounce would be healthy but everyone is waiting on Mr. Powell’s speech at Jackson Hole at the end of week, so less is more for now.
08:39 am: Morning focus on energy names as they continue ripping up with our Monday XOM Calls 95 dip ITM now as its above 98+. Yesterday, TLT gave a nice bounce but faded so keeping it on watch for signal if Tech bounce or breakdown for new weekly lows. TSLA also showed some relative strength so will use it for clues if tech bounces or breakdown.
Morning Trades: I started the day by shorting IWM to test the waters and see if breakdown below 190 but it didn’t breakdown and TSLA was ripping up, so basically flipped my trades into IWM META AMD AMZN and AAPL Calls, that closed a bit too soon but made the cash flow for the day. AMD was a little bit trickier as I got stopped on initial trades, but I waited and got back into those AMD Calls for a red to green move. During lunch time I shorted IWM with some PUTs for additional cash flow.
Losses review: Today I got stopped on IWM short and AMD long as I got a bit too soon, but I tried to cut losses fast and wait for better entries. That worked well and got my money back.
Key Takeaways: Do not be “perma” anything (bear or bull)… Traders, trade so when traders see a stock as IWM not breaking down, traders just cut the short and reverse fast for Calls as I did on IWM AMD META AMZN for great cash flow.
Look Ahead: We got the oversold bounce that I mentioned yesterday and today, but overall market still waiting for Mr. Powell to trigger the next move after his speech on Jackson Hole, so until then, the market is choppy so better take trades for cash flow and go back to cash until we trigger the next move one way or the other.