In the premarket I left this SPY chart with a specific concept which I believe is very helpful when looking at markets, that was discussed with subscribers. I used that to sell into strength, lighten positions from last week. But shorter-term, I am looking for whatever sets up, and there was an awesome buy setup in SPY for doing a call option trade. I used a limit order on the calls, as I usually do, and did not get a fill. Too bad, it was right at the lows, and a superb daytrade rally and a “daytrade melt-up” out of there. A daytrade melt-up is a specific technical situation. Do you know what it is?
The charts are below with the explanations for what I was seeing. And once again, that daytade setup is EXACTKY the same as any small stock setup – EXACTLY. Why are people not studying this stuff, wow. We all make our choices, this business is zero about talent, 100% about hard work.
TQQQ is up 32% in 6 days, why day trade a sling shot?
Of course. All different ways to do this.Those calls more than doubled.
I’m not set up for options but that must be a February call, all or nothing bet?
Yes, but it was the Feb 23 calls, so a little bit more breathing room, I never go less than 5 days out with a new position. Less reward potential, yes, but cutting it way too close. SPY has good option liquidity, as does QQQ. Also, I did a QQQ put trade today, excellent trade. I’ll discuss later, but as far as all or nothing, I do that when I’m doing very little option trading. But now I’m an “option trader” again, doing a lot more now with the volatility back, so 20% stops. So today, I bought the Feb 23 qqq 166 puts at 1.32, they got down to 1.20 on the qqq rally. The qqq finally broke and I’ve taken profits.
Yes meaning yes Feb, not yes all/nothing.
The three intraday pushes down to support in the Naz Friday looks like it might be a #1 bounce in a first wave down in a bigger correction.
What signs do you look for in these smaller bounces in judging whether they’re part a of a larger 3 wave structure before the bounce left translates.
https://www.tradingview.com/x/HJmWZuXY/
Your first comment, yes possible situation and insightful. Been playing guitar all morning, but I’m doing some videos later. I will go into how to use the judgement of this into taking shots into markets.
Some common patterns in the larger and smaller reactions.
NASX Weekly 2007 -2009
https://www.tradingview.com/x/PngXqXvW/
NDX 5M Feb 2018
https://www.tradingview.com/x/96to65ew/
Good. Going thru the charts and finding the examples (potential). These things repeat, just never exactly. We have to get the overall technical conditions down. So yes the flash crash is one. The other one another way this works out overall. With my belief of overall reaccum, it would work well to see an extended area here. For the permabears, the “bubble top” would be more like this at the second curve, so volatility really picking up, yet more new highs to flabbergast the permabears. The first curve is the beautiful reaccum which set up the doubling, it’s just that it got way out of hand.
Interesting wave analogy.
http://www.mcoscillator.com/learning_center/weekly_chart/stock_market_in_a_rogue_wave/
Interesting idea.