Grade: B-

Goals: Be more selective and raise winning %

Reminders/Aphorisms: 

• Don't fight the trend;
• Be patient, take good set-ups
• Respect at least 2:1 R/R

Overview: SPY and Friday grinded green all day and ended up in the 388-390 zone which was a prior high in September. We broke 390 but didn't move past that and in the AM premarket we came down and are starting down. This week we have the feds speaking which will note the release of the interest rate hikes and whether they're going to start curtailing or not. Potential scenarios:

1) We gap and go down, move up to 388-390 level and then reject, moving down to around 384-385 which was a level we stalled at the other day.

2) We keep going and blas tthrough the 390 zone and test 400.

Trade Analysis:

• Trade 1 was a trend reversal short. We had been ranging within $1 with a lot of weird action with candles forming down fast and hard. Once we broke the small 1m downtrend I entered into the short position around VWAP. Got my 50c easily and then held the runner for $1. I took this with smaller size (35 shares as opposed to 50) because we had a tight range forming at the open  so the market was very undecided.
• Trades 2 was a long continuation trade on the 5 minute, we had been consolidating around 387 and I was looking for the move to high of day. This was not a great set-up so I only took it with 20 shares and risked 25c which was the low of the last green candle. Looking back on this I was a little too early, if I had waited another 5 minutes I would have caught the move for the 50c I was looking for.
• NOTES: This was a very difficult day to trade with the SPY ranging between 387.5 and 385.5 all morning. I'm glad I was patient and was able to capitalize on the one strong move of the morning.

Lesson moving forward: Be patient and use important markers for entries.