Discover more from Advised Trader
Characteristics of today's market action on Amazon
Journal of daytrading
I was trading Amazon AMZN 0.00%↑ today noting before the open that IT COULD GO TO BOTTOM OF DAILY RANGE IF REJECTING 132.00…
132 was probably going to be rejected.
It opened in 130’s and proceeded to sell off immediately after losing vwap.
I SCALPED AROUND AND HAD A BUNCH OF WASHES
I think the reason for that is because I was watching $VX futures to see if they would pull their bits way too much. This resulted in micromanaging. So we have to stop doing that.
After seeing how bear should became I started loading a little more on the short side and I wish I had kept some of my scalps instead of taking them off because it ended up going to 126 area.
I was only expecting 129.
Now of course around 11:00 Central standard Time traders started to cover their positions heading into lunch. I bet on Amazon recovering to the view app and seen ES 0.00%↑ futures around 4300 bouncing.
I noted that Amazon hadn't touched the view that move back to 128 and the short covering rally usually happens at 1100 CST as stated.
THANKFULLY I HELD ON TO THIS WITH THE STOP BELOW THE 11:00 AREA FOR A 3:1 RISK REWARD WINNER TO CLOSE OUT THE DAY.
MICROMANAGING THE VX FUTURES
NOT HOLDING A PIECE OF MY EARLY SHORT POSITION FOR THE LARGER MOVE DOWN
OPPORTUNITIES FOR THIS TYPE OF DAY:
Selling the WEEKLY AMZN 0.00%↑ 130 call credit spread to negate micromanaging it
Weakness on the open is a reason to short if all sectors are weak; first VWAP LOSS is reason to short
Go one hour at a time till major buyers come back in. Cyclical failure may have happened. Economic news remains a factor keeping us sidelined from longs.
Keep watching for major market failure using UVXY 0.00%↑ and MAJOR STOCKS’ weekly calls into Friday for daytrades against resistance