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Shared by
JRockTrades

 

SPY

Feb 22, 2022 10:37


Shares traded: 60
Closed Gross P&L: $42.78

Tags:

OGT Technical Level

Big Picture

SPY had been in a steady upward grind since prior to me starting trading, but lately has experienced higher volatility. This is partially due to new monetary policy from the Fed, which anticipates a series of rate hikes this year to fight inflation. Simultaneously, we have the new threat of military action between Ukraine and Russia. Taken together, these challenges have presented serious headwinds and extreme volatility.

Technical Setup

VIX: 29
RVOL: 1

Price action had been choppy through the morning, but the 434 level stood out on the chart. SPY made a new high above 435 before quickly reversing and coming back into the 434 level. It made sense to me that if this level did not hold, then price could move back to the opening drive low just below 431.

Trade Management

As the 434 level broke, I took a short position with a stop above the previous consolidation range, about 60 cents from my entry. Price did go against me and retest this level, but it held and the trade started working. I covered a portion about $1 lower to cover risk on the trade. I continued to cover small portions into important levels. I had my eye on the LOD as a place to take the majority of my position off. I had a trailing stop just above 432. Eventually the last 1/3 of my position got stopped out before making it all the way to my final target at LOD.

Conclusions

Eventually I am going to actually try to hold a larger portion of my position to my profit targets. This is a major goal of mine and it's like once I do it once, I'll be able to add it to my Playbook. I didn't do a great job of it on this day, though you'd be hard pressed to call this anything other than one good trade. I had clear reasons to enter, well defined exit, made my profit target and bagged a wining trade.


Execution detail:

Date/time Symbol Qty Price Position
2022-02-22 10:37:23 SPY -10 $433.906 -10
2022-02-22 10:37:27 SPY -10 $433.870 -20
2022-02-22 10:37:28 SPY -10 $433.835 -30
2022-02-22 10:42:02 SPY 10 $433.257 -20
2022-02-22 10:43:12 SPY 3 $432.920 -17
2022-02-22 10:55:10 SPY 3 $432.190 -14
2022-02-22 11:17:17 SPY 5 $431.090 -9
2022-02-22 11:26:45 SPY 9 $432.220 0


Comments

2022-02-22 20:02:38
 

Have you considered trading options? Less cash needed than buying stock. More risk as well though..

2022-02-22 22:11:26
 

I do trade options, but it is hard to fit them into my risk profile. Easy to blow through my stop and DAS is setup to liquidate my positions when that happens.

Gravatar hjh6722030
2022-02-23 00:14:17
 

great trade!

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