Market have a really impressive bounce today with $SPX closed at 1295, which is right on the 20SMA. This activity shows me the power of 200SMA bounce for the first time. I know a lot of traders watched the 200SMA as the support to long in the past few days. Now it turns out this is a such a good long entry. What a pity that this rally is not with me together. I hold cash as the position.
Yesterday I made a bad trade in my real money account. Yesterday spy is right at 9EMA on 9 daily chart and I saw the volume is really low for the bouce, which makes think this is a shortable bounce. 127.51 looked a short for SPY intraday from 2:00Pm. I longed the 6 July 128 SPY at 2.72 when SPY broke 127.51. The lowest it went was 127.41. Now it is clear that this is a bear trap. Now I think my problem for this bad trade is that it is not a good time to go short, better to stay in cash to catch.
I set a stop for the put at 2.53, which filled 5 minutes later after my initial purchase. Right now, it seems my stop is good anyway. Today the market rallies and the put closed at 1.85. As I said, even for the option, I need to set the tight stop. A good trade should work right away. My bad to make this trade which made me a $120 loss. Still too much, like 8 percent loss.
For the rest of the week, I still want to see the market going down. I am bear on it, lol. But tomorrow I guess we should up.
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