COP Trade on Jun 5, 2020 11:30 from CharliePham: Tradervue User Stock Trades.

The Big Picture:
Since the low on March 23, the S&P 500 has been rallying relentlessly. It closed last week up 36% from the March low

The S&P500 Futures is looking bearish today - down 0.3% as im writing this (14:00). The volatility has been reduced and that can be shown by the VIX which is at 25.7 now and the candles on the SPY are getting smaller. QQQ yested ATH at 237.43 and reversted this level. SPY tested resistance at 313 level yesterday.

If this level holds then that indicates that the market is respecting this resistance level, if this level breaks then QQQ is making new ATHs and SPY on its way to ATH.

"The market tends to do what will inflict the most pain on the biggest number of investors."

Today, the disconnect between the economy and the market’s powerful rally flies in the face of logic. But more importantly… it’s creating a huge amount of pain for investors.

The total number of jobless claims since the pandemic struck is at about 48 million people in the US. Major companies are firing workers right and left… long-standing businesses – like car-rental company Hertz – are declaring bankruptcy… and we’re living in fear of an invisible enemy that already took more than 100,000 American lives. A positive outlook just now is that the U.S. employers reduced payrolls by about 2.8 million workers in May, but that was significantly better than the 9 million lost jobs economists had expected.

Taxes are going to rise sharply in the near future. The massive deficits are going to create a long-term drag on economic output. And yet, if you look at the price action in the equity markets, you’d think we have a booming economy with full growth, a balanced budget, surging optimism, and modest inflation.

Intraday Fundamentals:
- Shock value - Stock was gapping up above a clear resistance level. Took this trade based of CJT2013 (my consultant) watchlist on twitter.

ATR: 1.90
RVOL: 0.82
AVG Volume: 11.52M
Short float: 1.52%

• Well done: Pulled the trigger. Checked if the stock fit my criteria which is just did.

• Improvement Notes/Mistakes: Nothing that i can add on here. I would have taken this trade again and again. The small doji with the large eruption bar gave me a nice RiskToReward ratio. I cant change the outcome, but i know that over a large sum of entries that it will work in my favor.

• What i learned from this trade: Discipline and emotional stability. I did not react as the stock moved up and i did not react/feel anything when it hit my stop loss. I am becoming more systematic in my approach and if i keep this up then i am sure i will be profitable. We will see how my PnL looks after 100 Trades, and i have a +40R win then i can move it up to 200kr per trade.

Confirmations -
1: Break of VWAP
2: Forming at HOD
3: Stock gapping above a major resistance line