- TA check on SPY, bullish candle, 127 support, resistance at 128.5
- Market watch headlines - good node (payroll add 200,000)
- Forexfactory - economic data good on unemployment rate + some FOMC members speak
Sentiment : Bullish
TOS
- Look at option chain for 2 SPY call options
- Set stop lost
- Draw additional support and resistance lines on charts
- Added the lines for previous day Open, High, low, Close
- Prepare to buy
Almost buy after about 15 minutes, black circle, remind myself on the rules
a) Never buy the high, never short the low
b) Wait for confirm trend
After the black circle, notice that man I should have standby a put option too as it's showing a pretty good confirm down trend. [Trend is your friend Trend is your BEST FRIEND =) from Con and GMT] On second thought it break rule (a) it's breaking day's low but still above previous day open.
Stick to the plan, Call option with a confirm up trend. Then SPY went constipated around the blue circle man waiting probably one of the hardest part in trading so true ! The candles just don't want to break above that resistance line at the same time the buyers and sellers are just reluctant to come closer. There were several moments that I wanted to buy earlier since it's near the resistance in order to be ahead of others and I manage to stick to the plan. =)
Finally the opportunity start to show, noticed the bullish candle
- break above the resistance
- form uptrend
- jump in buyers
Clicked ! Buy -
Watched for MACD,
On 1 min chart, blue line moving into bullish half
On 3 min chart, crossover
Next, prepare to sell
- Hit $5 profit sell 1, trail 1 for $0.05
- Profit : $10 | Net P/L : Profit - Commission = $10 - ($1.25 X 2 ) X 2 contracts) = $5
Retrospect
- How nice right ? Blue circle buy, Red circle sell.
Ratio : 2/2
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