Big Picture
- SPY holding above 294
- China wants another round of trade talk’s before signing deal
- Tariffs will increase if deal isn’t signed
- 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)
- Fed extending its overnight funding Ops (QE) through January 2020
- Only two companies missed estimates so far this earnings season – 87% beat
- UK and EU strike new Brexit deal in last-ditch talks
Markets Intraday
- PM: SPY Couldn’t break 299.60
- Morning: SPY downtrend from 299.30 to 297
- Afternoon: SPY bought to above VWAP at 298
- End of Day: SPY end of day selling
Technical Analysis – Long Term
- Sell-off from 58 to 36 in 2018
- Consolidation between 38 and 49 in 2019
Technical Analysis – Intraday
- Day1: Gapped p on earnings news and sold off all day
- Today: Selling continues, currently respecting downtrend line
Catalysts / News
- Q EPS 1.21 vs 1.10 expected
- Revs up 3.6% Y/Y
Original Plan
Day 1 was clear short
Morning strength after weakness is shortable
Could bounce from 42.90 - 43 support zone (this warrants a few tries)
Execution Notes
Noticed the stock retraced to VWAP after 11am and decided to short this lower high as the downtrend line from yesterday was respected earlier this morning. Got short at 43.44 with a stop at 43.50. Got stopped out while I was having lunch.
Review
I should have covered some risk when it made a lower low in the 43.20’s.
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: B
(1=D, 2=C, 3=B, 4=A)
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-10-18 11:27:14 | MS | sell | $43.440 | short |
2019-10-18 12:45:00 | MS | buy | $43.500 | 0 |
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