SPY 12 Jan 2012

Before market open,

1. SPY TA - Channel Support and Strong Support/Resistance line at 128.50 ; ascending triangle breakout ; Next S/R level at 130
2. Marketwatch - Major headline news of revise unemployment claims hitting close to 400,000
3. Forexfactory - Bearish Economic data - retail sales : below expectation ; unemployment claims above expectation. 

Sentiment : Pretty 'jing' aka swelling. Standby for bearish reaction

TOS : 

1. Open SPY option chain to look for 2 Put contract
2. Set stop loss
3. Drew additional support/resistance lines on 1min candles chart
4. Added previous trading day, open, high, low, close
5. Remind myself on the 2 rules

• Never buy the high, never short the low
• Wait for confirm trend

Indeed the market reacted to the economic data, within the first 15min a trend was form and thought it could be entry for me (first blue circle). Held my click, why ? I was wary to trade the first 15 min when the market opened. While I was wary and thinking, I was too late, notice the huge red candle. [The bull climb up the stairs and Bear jump of the window]. Remind myself that there will be another opportunity.

Waited for the second opportunity (second blue circle) , once it break out the support line, I was ready to make an entry but did not get a fill. It was a clear overrun by the bears as the buyers for the PUT options does a big leap. Up my ASK price once , damn when it move down, it move real fast. [It was a psychology battle once again when the direction become so clear and you don't want to miss the opportunity - the temptation to chase the price again was challenging ] Decided to stick to the plan of chasing only once plus it's reaching the strong support of 128.50. Man I m glad that I stick to the plan as it went sideway for a period.

Somewhere around the 3rd blue circle, I thought it could be a start of a uptrend so standby my CALL option. But it just doesn't want to break above the S/R zone. Shortly after that constipation, bearish candles come into play and I switched back to PUT option. Made an entry again on the (2nd orange circle) but did not get a fill. [Everything happen for a reason - that's it for the day and closed my platform]

Ratio : 4/4