July 12
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Entries charts provided by IBKR.com
QQQ
Trades:
Trades Taken: 0
SPY
Plan: Friday after a big sell off, small size if I even trade today at all. Looking for my work to be done around the previous close. If we dip into it, I’ll take calls to go long. If we fail it, i will properly manage that out and try to get short on a headbump of that same previous close level. The 9 ema on daily if we test it may provide a bounce if the QQQ line up with it as well, keep an eye on this. Short trade set near ATH, only way I take that is a straight squeeze up this morning to it.
Result: Respected the first level at 558, but too close as you will see in the plan. The short trigger happened way too late in the morning to take (outside my rules).
Plan: big sell off on qqq yesterday. I want distance for the long, 20 ma and that previous range high around 486.90. We are looking to open around previous close, so we need a move away from that in order to take a trade. Straight up in to the 5 ema on daily would get me short. SMALL size today per usual on Friday.
Result: While qqq held previous close perfectly, again, on a friday i need distance before 10:00. We did get the trigger short, but it was right at 10:00, I aim to be DONE by 10. No trades.
Lesson: Be even more picky on Friday’s. As you can see, Friday’s are emotional, you can tell by how much further price action goes. Sticking to rules prevented me from taking a trade today, but discipline keeps me consistent. A professional doesn’t trade outside the rules.
July 11
Trades:
Trades Taken: 2
SPY
Plan: Inflation numbers released this morning, consider it a market earthquake. These types of catalysts are something I trade very carefully around. The premarket plan shows a jump up in action at 8:30. I will avoid the price action above the previous close on both markets. A lot of algorithms fire off with those numbers. Today will be looking for distance on trades.
Short trades again are in all-time-high territory, strategy says a failure and headbump of previous close for a short. I do not want to take any of the action above previous close, this was catalyst action.
I like the long for SPY a big sell off into yesterday’s open, will have support from the 5 ema on the daily chart. That is a long ways away with the squeeze yesterday, so a fast dip into end of day VWAP and I’ll take a stab.
Result: Did not get the failure of previous close I was looking for. It actually held previous close very cleanly. Wasn’t interested as it didn’t do what I was looking for. QQQ’s did though….
Ended up taking SPY long into the trigger late morning. worked well. Look how SPY stayed perfect within the boxes and levels today. I anticipated wide range, and that’s what we got.
QQQ
Plan: Failure of the previous close and a headbump for a short. Again, I don’t like the action above the previous close due to catalyst, so for the short I actually need a failure first, then a test of previous close to go short. Loads of support far down on the long, hard to say if we actually test down there today. Today may be a day of an afternoon trade…
Result: Beautiful to plan. Failure of previous close, waited for a proper retracement, averaged in with QQQ 503 puts, and paid myself on the first wash. RIGHT TO PLAN. Great trade. Captured spy long later in the morning for a second trade, right to plan. One short, one long, both to trade plan on this wide ranged day.
July 10
Trades Taken: 2
SPY
Plan: For a short, only PM highs to work with as we are in all time high territory again this morning. No distance, no trade. A nice dip into previous close would get be long, starting in a end of day VWAP. Potential trend formation and remounts today, but that is price action reading.
Result: Spy popped into short level like QQQ, but again no distance so I did not take that.
Second trade of the day came on a lesson opportunity, a remount of the short level, paying back out into highs SPY 557 calls. Beautiful example of waiting for the action to pop through short level, come down to retest it, take it long, pay out into highs. Great execution.
Understand this scalp play produced just under 10% in less than 2 minutes….
QQQ
Plan: PM high is also yesterday high of day, will take that if we have enough distance. As of a few minutes prior to open, there is no distance for the short. Previous close for the long, start at end of day VWAP
Result: QQQ flashed up into short level in first few minutes. But there is not distance, I do not take these trades. I watched it work to perfection.
I took a short formation trade as the price came back up (wanting it short) QQQ 500 puts. I added into level as the trade worked against me, again paying out on the first wash of 50 cents in green area. While in the red significantly during the trade, being able to correct the average and paying on proper push got me green on the trade. Great discipline to get the size out of the trade, and had to get rid of the last one before 10:00 with Fed speak at 10 today.
Lesson: The strategy I use relies heavily on not sticking in the trade very long. Wait for the level, start averaging, pay out of the first move. Yes, it can keep going in my favor after exiting trade, but it could also go against me if I stay in. Consistency is key.
July 9
Trades:
Trades Taken: 1
SPY
Plan: PM highs for a short, previous close for a long. Low of day is just at bottom of risk for the long. Not much distance for the short on either market. Refer to Checklist prior to a trade to learn how I handle this.
Result: SPY right into short level, worked well to plan. While keeping an eye on SPY, I traded QQQ to the short side.
QQQ
Plan: PM highs for the short, previous close starting at high of day for the long. No distance on either market short as we get closer to 9:30, so being cautious of size and potential remount trades.
Result: Opening right at start of entry area, I took QQQ 500 puts into short level, nice add right at level, hit it again with the push into risk, paid myself as we came back to original level, got out final on the test of morning lows. Absolutely textbook short trade that went into risk and was properly managed for a beautiful trade. My day is done in 9 minutes.
Lesson: Learn to trade SPY and QQQ together. While I was trading QQQ, SPY was moving right into the trigger level as well. Notice they both top out when SPY hits level. Look at my entries chart to see how I bought the best possible entry on my last add. Attention to detail is how it’s done here at Livingston Charting!
Yet another day where, according to plan, I am done with my day’s earnings by 10:00 am (today was 9:38 am).
July 8
Trades:
Trades Taken: 1
SPY
Plan: Gap up this morning. If we hold higher up in pre market, a dip into previous close would be a long trade. End of day VWAP is right at bottom of risk for the long. No short as of now as we are in ATH territory and still squeezing pre market.
Result: SPY remained in a no man’s land in the first 30 minutes with a 1 point range, not much to do with that.
QQQ
Plan: No distance for the long at previous close right now, line it up with SPY, likely QQQ in the end of day VWAP area. Watching spy closer.
Result: With no triggers out of the gate, I watched QQQ test previous close and then fail that level. I took a head bump trade on this. A difficult trade, I had to manage this one a bit, overall got myself back to green on the position right at 10:00 numbers spike.
Lesson: Plans don’t always trigger in the morning by 10:00. Today is a great example. As a trained professional, I took an alternative trade to a level trade. The head bump opportunity was there. I took it, not my cleanest trade, but I passed the test, and have my notes on what I need to work on.
A big news week in market with Powell speaking, will be a tight type of trading and waiting for the right opportunities. Expect large, exaggerated, moves this week.