Big Picture
- SPY back in August 282-294 range but spent all afternoon between 294-295
- China in US this week to discuss trade deal
- Fed easing and possibly continuing with new QE program (called Open market operations)
- Formal inquiry launched for Trump impeachment (Cover-up, secret server, abuse of power)
- US released tentative plan to limit investment in China (most likely for more sway in trade talks)
Markets Intraday
- PM: SPY retest and failure of 294
- Morning: SPY early power down then reversal and broke above 294
- Afternoon: SPY retest of 294 and a high of 295.20
- End of Day: SPY sold back below 294
Technical Analysis – Long Term
- Downtrend since stock touched 27 a year ago
- Trading below and respecting the 200-day SMA
Technical Analysis – Intraday
- Gapped down on catalyst news
- Sold all day but supported at 16.50
Catalysts / News
- HP undergoing large restructuring, axing 7-9k jobs
- Cash cow is printing supplies which some compare to a melting ice cube
Original Plan
Get short into a morning up-move, between 16.80 and 17 which is the resistance zone from yesterday.
Execution Notes
After some morning buying the stock was pushed up to 16.90 where I got short 1 lot at 16.88 with a 1R stop at 17.08. After a long period of time I decided to cover my lot at 16.84 for a scratch trade because the stock was being held up by today’s strong market.
Review
Stock was being pushed up by a strong market, SPY sold off in the early morning but quickly caught some bids at 292.70. I was right to exit my short as HPQ trade sideways all day between 16.80 and 17.
Grade Questions
Did I follow my plan? (yes/no/with mods): yes
Which modifications?:
What justified the modifications?:
Did you hold a core position until you noticed a reason to sell?: yes
Were your executions goods? yes
Grade: A
(1=D, 2=C, 3=B, 4=A)
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-10-07 09:39:37 | HPQ | sell | $16.890 | short |
2019-10-07 11:33:01 | HPQ | buy | $16.840 | 0 |
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