The Big Picture:
Yesterday the SPY gapped down and reversed gaining a total of 3.9% after an announcement by the chairman of FED. Once again the FED came in and changed investor sentiment. They stepped in and announced it would be expanding its buying and liquidity program to continue to support the market. This happened on a very significant structure level at 200MA - 300. The futures are pointing up now at a 1.2% gain (13:50) after the Trump administration announced that it is preparing a $1 trillion infrastructure bill to help pull the economy out of the pandemic-indeuced recession.
The direction of the market today will be affected by what Chairman Jereome Powell presents to the congress when he appears before them this week to deliver his semiannual report on monetary policy. Powell starts his two-day tour today before the Senate Committee on Banking, Housing and Urban Affairs.
Intraday Fundamentals:
Shock value. Stock has now been in a clear downtrend since april. Now gaining 10% premarket and breaking previous pivot high.
ATR: 4.12
Premarket volume: 300K
R.VOL: 0.86 PM - 3.51 AM
Short float: 0.93%
AVG.VOL: 4.26M
Well done: On my watch-list i kept changing between timeframes to see if my pattern occurs and it did. I saw the opportunity and put on a stop-limit order. It triggered but was just moving around that trigger area not really breaking out. I got some anxiety because of that but just held as my setup is ALL or Nothing.
Improvement Notes/Mistakes: When i change brokers i will just put a bracket order and remove the stock from my view. It will either go up or down, i dont need to watch it do either. Think of it as a coinflip.
What i learned from this trade: I learned that i was pretty nervous when i saw the price action on this stock. I am used to the breakout being quick but this stock was just slowly chugging up. That was unusual.
Confirmations -
1: Shock value
2: Forming at HOD
3: Break og VWAP
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2020-06-16 09:45:00 | LLY | buy | $158.300 | long |
2020-06-16 10:23:00 | LLY | sell | $161.300 | 0 |
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