December 27
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Trades Taken: 2
Trade Plan
Plan: Very clean trading yesterday, plan was spot on as usual. Not a huge fan of the setup this morning, plus it’s Friday on a holiday week, so not the cleanest of conditions. Both markets held yesterday’s short level well, sticking with the area of previous close for a short if we have distance at the open on a pop. QQQ hit a nice downtrend trigger yesterday as shown on the daily chart, SPY not as clean in that area, but the 20 ma and now multiple previous closes are there. Markets tagged moving averages perfectly yesterday. While they could hold true again this morning, I’d prefer lower levels on the long down near gap fills. May still take a smaller position for moving averages if the set up is there. Still have 30 minutes to go in premarket.
Result: Went with QQQ 523 calls for my first red trade of the month. Price didn’t respect first level, but provided a bounce and exit opportunity just below risk. Room to improve on this red trade, but overall not a bad trade. Went with SPY 594 calls for a reset playing halfway between levels, which is where the 50 ma was. Nice reaction here.
December 26
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Trades Taken: 2
Trade Plan
Plan: Short trading day on Tuesday, I was able to scalp that first short on QQQ for a nice trade. I like where the markets are as of 8:45 est this morning, but we will likely see a move before premarket. Previous close on both markets for a first reaction short if we pop. The long has a lot more support, but it’s wide! We have moving averages and gap fills below on both markets. As it appears now, if we do dip, SPY will likely test moving averages first.
Keep in mind, moving averages are DYNAMIC, not static. They move, and the 5 and 9 on the daily chart move the quickest of the ones I watch (other than the 9 ema on intra day chart). I say this because when I play moving averages with support lower down, I really need to pay attention to POTENTIAL distance from moving averages to the next support. Moving averages can quickly become resistance once price fails them and goes below.
Result: A slight move up out of the gate. While QQQ triggered better, I went with SPY 602 puts for a nice reaction while still in consolidation. Nice follow through after I was out, but that means we are getting speed and distance, two crucial things for a proper sized trade. I got in on QQQ 524 calls wanting further movement down, but worked right away on moving averages test. Again, I mentioned premarket how moving averages are dynamic and move. A lot of times it won’t look like a moving average tested until AFTER the move. I’ve learned from this time and time again, and the bottom entry on this QQQ trade shows that.
December 24
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Trades:
Trades Taken: 1
Trade Plan
Plan: Clean action again yesterday. Christmas eve, markets close early today. SPY has a range above around 599 that should provide resistance. Previous close is a bit close for a trade this morning. QQQ short up at 526.50 range and previous close for the long. The only trade I’m interested in would be a dip on QQQ into previous close with the cluster of moving averages for protection. If it doesn’t trigger on opening move, not interested. Been a very clean month.
Result: With a quick dip out of the gate, I was not quick enough to catch the move with calls, and it wasn’t close enough to snag a starter. Discipline prevented me from chasing calls. I waited and watched the markets move up for several minutes, QQQ inching towards the short entry. I enter with QQQ 527 puts for a fantastic 10% move back down into the 9 ema on the 1 minute chart. Not sticking around long on this short market day. Could provide a lot of follow through, could be high of day, could squeeze. Doesn’t matter. I aim for reactions to plan, and catalog the result. Nothing like gifting myself discipline and patience on Christmas Eve.
December 23
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Trades Taken: 2
Trade Plan
Plan: A nice squeeze Friday after the morning trade. Relatively flat opening with 15 minutes to go till 9:30. Not a fan of the setup today, I’d say QQQ short into moving averages for a first test would be best situation. Long on QQQ has two different options I’d be willing to take. SPY short is wide, I like the long better down at 586 into 584 area. Friday was big volume, a different feel as we approach, and are still in holiday trading. A size down day, focus on execution.
Result: Did not like the distance on SPY, focused on QQQ short like I mentioned. Went with QQQ 522 puts early as we approached moving averages and got a nice reaction. QQQ pushed hard the first minute, got a starter entry, paid out same minute. QQQ stayed in opening range for about 15 minutes before finally breaking and giving follow through. Yet again I am focused on the first test of these levels.
QQQ broke lows and showed some fear on the charts. I averaged in on QQQ 515 calls as we dipped towards long entry. Again, proper averaging and patience and I’m green on this trade before a proper trigger. The speed and distance on this is what allowed me to start in early. A fantastic start to the week.