What Did I learn about the Market Today?
We had a gap-up and reversal today. SPY found support off the 50 MA. We are in the middle of two inflection points: The upper BB and 200 SMA as resistance & support zone, or 5 SMA. No need to front-run anything. There is too much going on this week with Tech earnings (AMZN gapping lower) and Economic Reports.
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) opening range breakout longs off a 15-minute time period, and 2) tactical longs at 10 am.
Personal Reflections
- What Did I Miss? I failed to hold runners with my first scalp. Also, missed the continuation trade I had mapped out.
- 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? Being patient. The markets were short-term extended. Waiting for the tactical long off of bounce of support key MAs.
Today’s SPY Trade Setups and Analysis
- Lack of buying continuation and failure at the upper trend channel. Patiently! Wait for cup and handle off Teal Algo. Further confirmation with EMA and MACD cross. Don’t cut your runners before TL or EMA break.
- This is a continuation pattern with a H&S off resistance. Key to see this structure under EMA and ORB high.
- We had a Wedge of Doom for a large portion of the trading day. No structure, no trade. Set alerts and go on with your life.
