Market gap up today, day 3 (reversal bottom, follow through, gap). Based on the patterns into the screeners, even the strongest gaps up are into resistance, or not even overcoming resistance. Trade of the day may be short initial strength.
First trade was BABA calls. A few days ago it broke down the trendline then came back in. I think it might test the resistance downtrend and there is room there for calls. I got in late, and didn't wait around. Loss #1 (C trade). Then I started seeing gappers failing. Reversed to puts, but the first try didn't work (C). Second try I took off highs and got a B trade.
NVDA was also on my list to fall apart on this "up is down" day. I passed on the puts after the second high--though that has been a winning setup lately in general. Finally got in too late and ate the spread there. Second try was the win (B+).
Market volatility continues to be tough, and I'm adjusting by trading smaller. Trading smaller helps me take multiple trys on an idea, while cutting losses small. Of course I love a good A++ day! But B days also pay the bills.
Zigs no zags.
MOCO and DC area traders! Bring your trading buddies and join us on Tuesdays. This is a friendly professional networking group for individual daytraders. https://meetup.com/potomac-daytraders-network/
