Opening Thoughts• Did a much better job today getting in the right things and was not afraid to put on some size. You can tell your reads are typically fine, it is still your trade management and timing that you need to continue to work on. Some of the plays you were in and from the prices you were in, were sick but you were too impatient to take profits and was getting a little fidgety once you were in a position. Getting in trades is not an issue for you but rather holding more for longer and trusting you setups. You left an ungodly amount of juicy meat on the bone today. Need to capitalize more on the things you work so hard to get in.• Keep getting bigger and get great prices. Continue to refine your filters so you are trading your best setups• Shining moment of the day was getting the biggest of the day in something that had breaking news intraday and you didnt back down from it (although you could have managed it a whole lot better and made a whole lot more). gotta get the confidence back and have a few winning days in a row. trust your setups when you really feel it.
Overview• Did I trade the best stocks today? There were a couple good ones today that i did not trade like NFLX and AAPL. Finding the ones that after the first 5 minutes are still on the Dank Sauce lists, combined with a sector weakness or strength is making for the best setups for me. WLT I apparently did not give enough room because this ended up turning out to be the single easiest stock of the day.• Did I identify proper market structure?Yes the market was strong this morning making new all time highs. We sold off in the afternoon but had a strong finish into the close which got me out of my short attempts into the close• Did I push to trade more size? yes• Did I let any losses get away from me? AMZN was a technical stop issue. It may have been because the spread opened up to far over it but it only got my out of a quarter of my position. It was certainly the right place for the stop though and i was clearly wrong there because it shot a point in my face. Then bidding out of it was a nightmare.
Overview• Did you have any mental notes? Did a nice job of boucning back after this monster rip and making small wins one at a time until you got your footing back and VOD came along. Always good to end up more than you were down in the morning. This was an unexpected rip so hopefully we wont have to do that as often but nonetheless still a good comback. You can trade with the big boys. string together a few decent days while we are fairly quite and then come earnings season which is fairly soon start killing it.
Big Picture• SPYs, IWM, QQQs, & VXX: SPYs making new highs today which is strange as the russels did nothing but trend down all day. There was a huge divergence between the two today. the VXX mirrored more the SPYs today than the IWM and had an even weaker close showing potentially even more strength in the SPYs. The SPYs only briefly dropped below its opening gap up price but closed nicely above it. Will look for this divergence to play itself out tomorrow and would likely lean towards the SPYs catching up with the russels• Economic Reports: Factory Orders reported at the upper end of consensus today• Other Notes: Home builders and energy were the weakest of the day today especially the refiners (VLO, TSO, HFC etc.)The rest of the market was pretty strong with Health Care continuing their gains from last night and consumer discretionary not far behind. the metals GLD and SLV got crushed.
Other TradesOXY - was able to make some money in this but could have made a lot more. You had nice size in this but was incredibly impatient once you were in it and had waited for the setup to show its cards.OC - this was another dank sauce setup and you timed this well. I really liked the daily chart and the sector relative weakness here. It did not get the follow through i was looking for though.AMZN - Was looking for a similar setup to NFLX and then there was a technical glitch that made the loss much larger than it should have been. Got nice prices in this too which was a shame. Was clearly a big breaking point and a good place to get short if it was going to be a short. Im okay with the risk that i meant to put on this play.
Rules Of Trading• SNIPER Mentality• Keep it simple; High Probability Trades• Tell whole story of stock• Innocent until proven guilty• Trade to make $ Not to trade• Let the plays come to you• Fight for great prices• Add input to: Morning Idea Sheet & VTF