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 on Friday was a rollercoaster. We started moving down, then went up and topped out around 379 before moving down to 370, consolidating and then ending at around opening price. On the weekly it looks as if the SPY used the former down trend from August as support and bounced. The daily on Friday looks very similar, with a big bottoming tail. We are starting the day up a little and between the 378-379 zone where we topped out on Friday before the strong selloff and the 374-375 level which had been key in the past. Potential scenarios:

1) We sell off a little at open to premarket close and then bounce and continue long. We likely break through the 378-379 zone and keep going.

2) We move up and rejection at the 378-379 zone or at the 380 level and then move down to 374-375. At this level we likely bounce and move back up to previous day close at 376.35.

Trade Analysis:

  • Trade 1 was a random trade that closed for even - not sure what this was
  • Trade 2 was a Downtrend Continuation short trade. We had moved down past previous day beautifully on a trade I wanted to take and missed. I got 50c on my partial but then the price spiked and hit my stop loss at break even on the last 15 shares. This was a stop hunt before the big move down. This wasn't an optimal set-up but it did work for me. I don't think I would take this trade again looking back at it as it was kind of a FOMO trade due to missing out on the initial trade.
  • Trade 3 was a Trend Reversal Continuation Long trade which I got a bad fill in and closed for even.
  • Trade 4 was a Trend Reversal Continuation Long trade. We broke the 5m trend like and had a strong bounce off the 375.5 zone, moving past previous day close and VWAP. We began consolidating around VWAP. I got in at below below and the whole dollar and rode the move up for 50c. I took this with smaller share size because the trend reversal continuation trades are always a little riskier.
  • Trade 5 was a Trend Reversal Continuation short trade. We broke the second 5m trend on the day and were consolidating above the previous day close. I got a good entry and it looked like we were moving in the right direction but we met strong resistance at previous day close and bounced strong, hitting my stop loss by 1c before moving down again.
  • NOTES: Missed opportunity around 9:50 at Gray Arrow 1 - we had bounced previous at previous day close and rejected at VWAP. We tested again and were consolidating on the area. We had a pop where I could have gotten in short for the break of previous day close for close to a $1 move but I wasn't concentrating.

Lesson moving forward: Continue to use important markers for entries. DON'T HESITATE. Act quickly on trades to get better entries and catch moves. FOCUS. Stop talking to idiots on YT or other places and get distracted.