Micro: Uptrend
Intraday: Starts downtrend then after V turns into Uptrend
Sectors:
Depth:
Trade:
1: Micro Continuation Intraday Reversal
Trade Ideas: A
- I knew today would be a massively choppy day because for the billionth time, CPI PPI EARNINGS later on this week. The thing that made it somewhat difficult is that I knew I would try to trade something and I had a few reasons to go long so I was looking for that opp.
Bullish:
- VOLD above 2
- ADD moving above HOD
- TICK holding above 0 with strong buying at open
- Defensives up but relatively flat
- VIX making new LOD and LOW (low of week)
- SPY held higher lows after making LOD while QQQ was making lower lows signalling that sellers are not that strong
Bearish:
- Tech selling of largely at the open with QQQ doing the leg work but XLK being very very very weak
- 10m MACD slightly bearish as well as 30m
- making lower highs lower lows on SPY throughout the premarket and open
As you can see, there are more reasons to be bullish rather than bearish but at the same time these reasons were still somewhat arbitrary given the fact that CPI is tomorrow. Once the range was locked in I knew opportunity was going to be slim so it was either get in at the low and hold for an hour for a 6 point trade or just avoid it. I took my first L for a super small loss and I just avoided it altogether which I think was the right thing to do.
Execution: B
- Again I took the long looking for LOD and I sold that position when the QQQ broke to a new LOD and I was right to do so because the SPY flushed about 4 points past my predetermined stop price which wouldve been a full loss instead of the tiny less than 1 point loss I took. I think doing that and avoiding the rest of the day was actually the best I couldve done. Could I have bought that massive fakeout LOD and held it for a big 10 point move? yes. Is that a good trade on any other day? absolutely not. I dont want to emphasize bad habits on a day like today when I could just avoid it altogether.
Mindset: B
- Yes I avoided most of the bullshit today and kept my money instead of throwing it at the slot machine but at the same time I think the best traders out there just left today alone altogether. Didnt even give it 1 minute of their energy. That is really what I shouldve done but given the fact that I usually have pretty large red days on pre-CPI days and today I only lost less than 1 point. I think that is a big step in the direction of avoiding this action altogether.