I am keeping missing good trade these days in the real money trade. I feel a little bit sad for my inaction at so many good entry. Anyway, as I have so little cash in my trading account, I cannot risk any bad trade any more. I have to be nimble and precise for my next big trade.
The above chart showed the SPY chart for the past 3 sessions. Both yesterday and today offered good short entry point. I made good trades for SPY put and short TZOO today in paper money.
Yesterday (06/15/2010) from the open to 11:00AM, SPY formed a triangle pattern and started to break down from 11:15AM. I placed a buy stop order for SPY put in case SPY broke down. And it turned out to be a good strategy. I gained $500 by only 10 SPY put.
Today morning, some good news was coming, which push up the market higher in the morning. But I started to notice that from 11:00AM to 1:00PM, the SPY price hovered around 127.90, but the MACD was started to forming divergence, so did the RSI. I bought 100 June 128 Put for 1.47 at 11:05AM using buy stop order again. At that time, I thought SPY was going to break the lower trendline. But SPY just kept going up to 127.97. I was off $3000 at the high for the put at the begining.
From 1:00PM, the market started to sell off. The bear flag from 1:00pm to 1:15pm offered a good short entry. I closed my put for 2.04 when spy was at 126.70. That is a good paper trade.
And Yesterday TZOO touched 9EMA on daily chart to form a bear flag. I shorted 300 TZOO at 60.30 and added another 200 short at 58.17. TZOO was off 12 percent at the lowest today. I covered my short at 52.17 for pretty good profit. For short, I have to cover quick when seeing the bloody drop.
Also Today I entered the VRX short for 50.33, covered at 49.74. The strategy is that VRX broke below 20sma and looking very weak.
At 3:00pm today, SPX touched 1255 which is 200SMA in daily chart for the first time. A very impressive bounce from 1255. That is the power of 200SMA bounce. I monitored the index closely at that time, but did nothing at all. I missed the bounce, but I will look for some pushback to enter long tomorrow.
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