I saw a good bounce day for the US market today. Yesterday night I monitored the /ES chart closely to see it would gap up this morning. Actually I did not like the action. I wish the spx will gap down to 1270 in the morning, then dip buyer would coming to buy it. I would also long it from 1270 aggresively. Anyway, the market chose to gap up today, which is not bad either.
Yesterday I have set a trading plan: buy the weakness in the first 5 minute then take off around 11AM. But in the first 10 minute, spx down from 1283 to 1281. I were fearful at that time just like what I did on Tuesday to see my call for a low price. Actually this should be a good long entry point. I am thinking the safer long entry point for today is maybe at 9:45AM-9:50AM, when the index up again to pass the open high. This gave the confirmation that today is a trend up day. The June 130 call had been up for 113 percent at the highest today. If I bought some call today at the good entry point, I would sell at around 12:00PM for at least 50 percent gain. Just missed it!
Actually, I chose another way to trade today. I short the market at the high using paper money account. I did short twice. The first short is at 10:15AM, when spy=129.50, the first high today. I believe this is the first resistance today, so I short it for a scaple. SPX had a very shallow pullback in the next few minutes, then break up again. Remember my lesson learned in the past two days, if the trade is not acting right, cut as soon as possible. I covered my short at 10:38AM, after the first down bar after the break up. I was very happy at this. I only lost 2.00-1.91=0.09 for the put. Later the put is only worth 1.56 at the lowest. Lesson this trade for me: Do not short the stock at the first high, wait for the 2nd or 3rd high to short when some divergence occur.
I believe today that we were going to see some selloff after 3pm, given that nobody want to hold the long position overnight as we are in the bear market. I reopen my short position to buy 100 June 129 put for $1.25 at 1:06Pm when spy around 129.70. I admit that since this is a paper trade, I am more aggressive and casual. If it is real money trade, I would not do this trade. The trade is not acting right at the beginning as we had a short squeeze from 2:30pm to 3:00pm to push the index higher to spy=129.93. I still believe there were going to be some selloff. My bet was right. We saw the selling from 3:00pm. I were not greedy and did not want to hold the short position overnight. I covered my short when spy=129.38 at 3:49pm for $1.38. The gain in the 2nd trade conpensate for my loss from the first trade. Not too bad.
I do not know what is the market action going to be tomorrow. I feel we can either go up or go down. I prefer market to go up tomorrow to test SPX=1300, which is also the 9EMA on the daily chart. I will look to sell at the rip on Monday next week.
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