Dairy Week 2 Day 4

I should write this post on Friday......

The index was gap down based on the bad employment rate number, which is expected. The SP index started at 1297.90, then it found the dip buyer. It had a nice bounce to 1308 around 10:45AM. Reflecting myself, Thursday close is a good short entry when spy was at 132. I saw the June 131 put has surged from 2.10 to 2.88 at the Friday close, whichis around 40 percent gain. Then if sold the put, and long the call again, it is another good profit. Gosh, so many winning opportunities. I just keep missing them.

The index plunged down in the Friday afternoon and closed at 1300 at the Friday close. It formed a gravestone doji, which I am going to discuss this in the next post. The Euro FXE is up, while dollar UUP is weaken. Usually this means the stock market should go up. But the market was down based on the bad news. This created a divergence. Next week, the Euro, oil and market should go at the same direction. And the bailout news from Greece should be overally good for the US market.


Talk about some trade I have made in the real money trading account.


At 13:50pm, I saw the spy had a conslidation and the stochastic indicator was pointing up. At the time, The June 132 call bid/ask price is 1.06/1.08. I thought I may lose another push up, hence I set a limit order to long the call at 1.06. The bad thing happened. Once my order was filled, it plunged down to 0.98 in one minute. Please see the above chart. Now I know that my entry point is the bear flag. The spy was right under 20sma in 5 minute chart. I should wait for the signal whether push up or go down. If I really wanted to long at my entry point, I should set a stock right away once seeing the index going down. Now I am thinking how to avoid this kind of the mistaken entry point. I should also look at $RUT chart and $COMPQ chart at the same time. They are performing ahead of the spx index. See next chart. At 13:50pm, the russel and nasdaq was clearly in the down trend and forming the bear flag. I should not look at one chart, should check other index chart at the same time.







My current position:

1. 37 June 130 call at 1.79 bought before the Friday close.
2. 15 June 131 call at 1.23 bought before the Friday close.
3. 40 June 132 call at 1.06 bought at Friday 13:56pm. This one has already given me 30 percent loss. What a bad entry!

Monday should have a nice bounce. I wish spx can go to 1310 to 1315 on Monday. My target is let my position 3 break even, and gain some money by position 1 and 2.


Then Let me talk about my paper money trading. I was doing very well on it. Long 100 SPY put on Thursday and sell it right at the Friday open, which give me a 10,000 paper money profit. And I long TNA at the Friday open for 76.56, sell it at 10:30Am for 78.50 for some profit. In the paper money trading, I can control myself quite well, not panic, not greedy. LOL.