This should have been a HUGE HUGE trade...
JPM was holding $92 support for more than a week now.
-- Below $92 there was an air-pocket/window on daily up to $90.3.
-- Had been stalking the name, having shorted it successfully a couple of times the previous days against $94 resistance.
-- Very weak tape
-- Very weak sector, couldn't catch a bid and reverse convincingly. XLF was on the verge of breaking important daily support levels.
-- Had alerts at $92.5 and $92
---> A+ trade, waiting for quite some time now to play out
Alert hit when it broke $92.5, right after the flush through $93 support.
I put it on a screen but didn't pay much attention since it was extended on the 5/15min timeframes. Needed time to consolidate before next leg lower.
Nice consolidation below $93 support for about 30mins, rejecting the level and VWAP to the penny! I saw it as it was starting to break lower,
got short FILLER size, risking above $93, expecting the break of $92 support, wanting to add size!! after consolidation below the level for 5-15mins, before next leg lower.
Well, JPM broke $92 and never looked back. I didn't feel comfortable with adding size, as I felt I was chasing momo lower, so I sat tight.
It did a quick mini-consolidation at $91.7s and then flushed to $90.5.
And I had just Filler size!
Covered in-front of $90.5.
Got short again small size after it bounced back to VWAP and rejected the m. average.
Covered at the close.
Let's review:
(-) Trade deserved wayyyy more size than just filler position to begin with. I should have hit it with min. half. Tier I size as it was moving away from $93.
-- Nice consolidation below support+VWAP, rejecting the levels to the penny.
-- weak tape
-- weak overall sector
-- Market alignment
-- Trade idea I was waiting for quite some time to play out
-- Opportunity for great entry BEFORE the real trade (break of $92 support) develop
(+) I feel ok I didn't add below $92. Yes, I should have added small since the opportunity was present and I would have been paid in this instance, but chasing momo lower, esp. with size is NEVER a good idea.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2020-07-09 10:11:55 | JPM | sell | $92.450 | short |
2020-07-09 11:05:03 | JPM | buy | $91.040 | short |
2020-07-09 11:20:21 | JPM | buy | $90.965 | short |
2020-07-09 15:17:23 | JPM | sell | $91.490 | short |
2020-07-09 16:00:00 | JPM | buy | $91.320 | 0 |
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