Scalp on SPY - 18 Aug 2011

As mentioned in the previous DMA, I m bearish. After checking out the unemployment claim data

8:30am	USD		Core CPI m/m		0.2%	0.2%	0.3%
8:30am	USD		Unemployment Claims		408K	402K	399K

the index future start to tank. Even before that Dow mini future was already down by 80 points before market open. Plus marketwatch news on Gold breaking record high again to 1819. All these lead to me getting ready for a bearish entry.


15 minutes after market open, spotted an entry

A few minutes later suddenly there's a sudden surge in volume forming a big bearish candle and my trailstop triggered shortly after. Nice profit of $390 in 14 minutes =D

Daily Market Analysis - Friday, 1 July 2011

Thursday, 30 June 2011 AMC

Dow	12,414.34	+152.92	+1.25%

Nasdaq	2,773.52	+33.03	+1.21%

S&P 500	1,320.64	+13.23	+1.01%

Russell 2000	827.43	0.00	0.00%

Friday, 1 Jul 2011 Economic Data 

9:55am	USD		Revised UoM Consumer Sentiment			72.0	71.8
9:55am	USD		Revised UoM Inflation Expectations				4.0%
10:00am	USD		ISM Manufacturing PMI			51.9	53.5
10:00am	USD		Construction Spending m/m			0.1%	0.4%
10:00am	USD		ISM Manufacturing Prices			72.3	76.5
All Day	USD		Total Vehicle Sales			12.0M	11.8M

Technical Analysis


Summary
To recapped from Almanac :

1. First trading day usually gains more than all others days for DOW, 1 Jul Scalp long DIA
2. July is the best month of the 3rd quarter

Market been rally since Monday, bull might be exhaust - $DJI up 497.76 points in 4 days (highest since begin of 2011.) But it could be a cover of points from the losses from early June (-520.85 points in the first 8 trading days of Jun)
Day Traders closing their position to profit take.
ISM data bearish forecast
5th candle reversal (3 patterns of 5th candle reversal in 2011)
1 Pattern of 8 consecutive bullish trading days in 2011 (31 Jan to 9 Feb)


Market Direction for Friday, 1 July 2011 : Up


Accuracy : (2/3)

SPY Trade - 23 Jun 2011

I decided to have my virgin entry on SPDR S&P 500 (ETF) (AMEX)‎ aka SPY. I plan for day trade meaning by end of the day I would have close my position no matter what happen.

Why this trade? Based on today's DMA - http://shulouto.blogspot.com/2011/06/daily-market-analysis.html
Market direction for 23 Jun (Wed) - down

1. Probably the New home Sales data will be probably bad base on 21 Jun existing home sales
2. Drop in GDP and increase in unemployment rates
3. Candle stick pattern short dusk / bearish engulfing (correction it should be shooting star pattern "man i need more practice on identifying the candlesticks pattern")

Plus Economic Data on Unemployment claims (up) and I think the new home sales will be bad too

8:30am

USD

Unemployment Claims

429K

414K

420K

10:00am

USD

New Home Sales

319K

311K

326K

Trading Plan
I was waiting for the market to open around 9:25pm and ding ding ding, market open and damn SPY gap down from $128.67 to $127.16 (-$1.51) Man couldn't take my entry as I m still paper trading and with the 20 minutes delayed quote, the option chain open only abt 15minutes later.

Profit Target : $0.40
Option price : $2.40
# of option contract : 10 "Due to my other position i can only afford to buy 6 contracts =\"
Stop Loss : $0.40

Bought the Jul 11 127 PUT option. Took half off the table when it hit $0.40 profit target and trail stop the remaining 3 contracts @ $0.20. (51 minutes)

Profit : $183
Commission : $35.4
Net Profit : $147.60

What's Scalping ? (From investopedia)
Scalping is a trading style specializing in taking profits on small price changes, generally soon after a trade has been entered and has become profitable. It requires a trader to have a strict exit strategy because one large loss could eliminate the many small gains that the trader has worked to obtain.