December 13
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Trades:
Trades Taken: 1
Trade Plan
Plan: Clean trading yesterday, SPY heading down for a proper test of the 9 ema at the close. A gap up in premarket, then straight sell off starting at 8:30. Long on QQQ would be a dip into 530 are, but high of day yesterday is a point away. Not a fan on the short at pm highs for QQQ, so no short for me on QQQ. SPY has a range to work with on the short side starting at 607.46, long would be moving average test with the previous close near the bottom of risk for protection. Set up on SPY is much cleaner as of 9:15.
Result: A nice way to end the week with a quick in and out within first few minutes right plan. I was leaning long, and we did indeed get a few red candles on SPY, and 5 ema pulled up with pm action. I went with SPY 605 calls to plan, wanting to start at the 5 ema and work it into the 9 ema and close if need be. Well, it worked instantly a tad above the 5 ema and I paid out right into opening/morning highs. I can’t say it enough……FIRST REACTION is where consistency is bred. Can you accept leaving money on the table if it means you are green every day!?
December 12
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Trades:
Trades Taken: 1
Trade Plan
Plan: A retracement in premarket this morning after yesterday’s squeeze. The shorts are fairly straightforward at previous close on both markets, high of day within risk for both as well. The long already worked well in premarket for QQQ at 526.50, so I would be watching the level lower which is at 523.62 . For SPY I like the 9 ema long, curious to see exactly where that opens up. Gap fill of 602.80 could be within risk, or that could be the reset trade, we’ll see regarding the distance at open.
Result: Because of where we opened (SPY moved up almost a point in last 10 or so minutes of premarket) I elected to trade the 5 ema into the 9 ema on SPY. To do this, I went with SPY 605 calls. What a nice trade, both discipline and averaging properly got me nice and green on this trade before it even decided to do anything. More importantly, look at that understanding of peaks and valley through way of buys and sells. That’s what I’m talking about!!!
QQQ stayed above and based above that 526.50 area I was watching.
December 11
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Trades Taken: 2
Trade Plan
Plan: Clean trading yesterday. This morning we have a significant premarket move, as expected, with the release of CPI numbers. CPI and a few other key releases tend to create a stock market earthquake. Not ideal when you aim for precision, but let’s see what we get today.
All time high territory for a short on SPY, looking at 607.80 area. The long I like for SPY this morning is if we dip into the 9 ema, having the previous close near the bottom of risk. QQQ short I like a pop into all time high for a first reaction. For a long on QQQ, while 523.21 area SHOULD give a reaction, the proper long is much lower near previous close and moving averages. Curious to see exactly where moving averages open on QQQ this morning.
Result:
Strong move in premarket continued on first move for the markets at the open. QQQ straight up into striking distance for the short, I went with QQQ 527 puts and nailed the first pullback. Absolute killer entries and exits here into standard first target. I waited to see if we would continue to push, we did. I took SPY 608 puts with a starter position as we screamed towards entry area. Again, paying out on first pullback right into first target. I don’t care what happens after first reaction. Reactions, not reversals.
December 10
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Trades Taken: 2
Trade Plan
Plan: Some clean trading yesterday. I went long 3 times even though the market was down all day. Don’t need much to be profitable when you are just going for reactions and not reversals…..
SPY is smack between 5 and 9 ema on daily chart. The 5 ema also lines up with end of day VWAP. The previous close is the middle man on that play. SPY is my main watch for the day. QQQ has previous close and 5 ema for the first long IF it stays above in premarket. Short isn’t as clear on QQQ. The 9 ema would be nice for a long, but would require a nice sell off.
Tomorrow morning is CPI and PPI on Thursday. Today will likely be the last clean morning of the week….
Result: Marked dipped out of the gate, that means I go with calls to plan. I went with SPY 604 calls into previous close, paid out, added on wash towards 603.91 gap and 9 ema, paid out fully on the push. Great first trade. I hit it a second time as we washed towards lows with SPY 604 calls 2nd. I wanted this lower into the actual gap fill and 9 ema, but I pay out when it works, because I’m looking to be involved, not be perfect. I got out fully both times as we approached the 5 ema on the daily. This is an area I was wanting for a short, but did not have distance at the open. This area turns into a target for longs. The short at 5 ema would have worked perfectly around 9:46 as we approached it from lows.
December 9
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Trades Taken: 3
Trade Plan
Plan: Not much movement as of 8:55 am. For SPY I like Thursday’s close for a first try at a long, curious if the 5 ema is within risk to protect on that. reset down near 604 gap fill area. The short on SPY would be Friday’s high of day into trend for protection. I would prefer the long. QQQ, Friday high of day for the short, 523 area into Thursday’s close for a first stab at a long. 517 gap is nice, but likely wouldn’t test early in the session.
Result: SPY gave a long trigger, QQQ gave a short trigger within first several minutes. There was the slightest divergence between the two markets this morning in first 10 minutes, SPY breaking morning lows, QQQ holding. I went with SPY 606 calls and worked it nicely. First time for just a 30 second trade, quick reaction of over 15%. It doesn’t take much. Hit it again as we broke lows, I wanted it lower into actual level. Again, I pay out when it works, and it did. I paid out where I did not just for reactions, but QQQ was very close to short trigger yet again. As I type this at 9:52 am, the short plan on QQQ worked great.
QQQ short reaction was nice, sending SPY down to the proper gap fill area. I smoked SPY 606 calls 2nd again for another quick, but predictable, reaction.
QQQ continued down, could not pass up the speed and distance right into the long plan. Went with QQQ 523 calls for yet another great first reaction trade. Bigger size on this. Why? SPEED AND DISTANCE. Fantastic averaging on this one which resulted being green almost immediate on the reaction.
I stay consistent because the strategy I do my best to implement takes advantage of reactions, not reversals…