What Did I learn about the Market Today?
After a bearish close on Thursday we gapped up on Friday to make it 10 consecutive up days. We are still in the middle of two inflection points: The upper BB and 200 SMA (The Upper BB has moved higher and above 200 SMA today) as resistance & support zone, or 5 SMA (which crossed over the 50 SMA today). No need to front-run anything. The market closed the week short-term extended to the upside.
There are usually one or two ‘big plays’ each day. If you identify what the ‘big plays’ are and the key stocks, trading becomes easier. Why? Because you’re getting yourself in the right stocks at the right time. Today, the two ‘big plays’ were 1)Tactical longs with the markets recapturing the previous day high and MACD cross, and 2) I lied. Only one.
Personal Reflections
- What Did I Miss? I failed to get some earlier tactical longs on A+ setups on my watchlist
- What Trade I Did? I did take the trade #1 with (3) /ES Contracts and solid scalp (below in SPY Trade Setups and Analysis)
- What Worked Today? Quantum Stocks were on fire and I failed to take partial profits and instead closed the entire position.
Today’s SPY Trade Setups and Analysis
- We closed the cup during the after hours and the handle was developed with a nested C&H. After recapturing YHoD and key support we pushed higher.
- Lack of buying continuation and tapering algo rejections there was an inverse C&H and a break of green algo for a small scalp within the controlled selling channel.
