Weekly Newsletter   Challenge account   Weekly Newsletter   

Another beautiful selloff which failed

Today, the market showed a spectacular rally and recovery from lows.

The futures sank by 1.40% and after the market opened we went even lower and undertaken the previous lows of 2711 level (losing over 2% at 2691 level resetting my correction tracker).

But then a spectacular rally happened.

Trading Results

As mentioned in a video in my yesterday’s post we did went below the previous lows, re-tested the correction lows, and then started seeing a hammer candle indicating exhaustion. All we need now is a confirmation and we will be moving up again.

This selloff was expected. For a few days after a bounce the market was signaling that we may re-test the lows or even go below. And it happened. And as it happened, big money came back and started buying. All we needed a flushout and a hammer candle to form.

Only, I didn’t expect it to happen in one day – today.

Tomorrow we may see some easy movement and possibly going lower again. Although, I wish this rally continue.

This resets my “correction” tracker increasing the level of this correction from 7.8% to 8.5%, 32 days length, and 2691 lows.

Trading Results

If this was really the bottom, expect a recovery.

However, despite buyers coming back and pushing this market up we had an SPX Condor expiring tomorrow. The put side got so deep in the money that I didn’t expect recovery by tomorrow’s end of trading so I decided to roll the condor away. I closed almost worthless call side, rolled the put side, and sold new call side to offset the cost. This trade was a wash (debit was fully offset by a new credit, see the last three groups of trades).

Trading Results

Then we also had TESLA trades. The Citron group announced being bullish on TSLA and the stock rallied hard. My calls got busted so I had to roll them. I rolled the entire Condor higher and reversed a few calls into puts. Still, TESLA will be a pain in the neck and I am planning on reversing those trades into SPX Condors (I did one trade reversal though, today).

Trading Results

Trading Results

Trading Results

Today’s overall trade balance: +$1,216.00 credit

Leave a Reply

Your email address will not be published. Required fields are marked *