The
gifts of a bull train
Today’s session really started with Sunday night’s hourly extreme
oversold signal that provided us with a great risk 3 points for 10 long setup
that we entered at 2066.00. It felt pretty great waking up and realizing your
overnight set and forget trade worked out perfectly as it filled the profit
limit order at 2076.00. When the day session opened, we tried for a cute
short at 2078 for the risk 4 for 10 setup at the 1HR 50SMA resistance. The bull
train quickly obliterated our stop at 2082 and it became clear when it went
above the 61.8% Fibonacci retracement of Friday’s high vs Sunday’s low that
bears were too weak and lost their battle. We then proceeded to buy every dip
as the entire day session was merely just a 5minute 8EMA and 20EMA bull train
re-entries scalp long as shown in the “tutorial” post around lunch time.
Subsequently, the market fulfilled the immediate targets of 2089.50 and 2100.
Then, minutes before the close, we shorted at 2099 for the risk 3 for 10 setup
based on our extreme hourly overbought signal and that the secondary immediate
target has been fulfilled. The
trade worked out half decent as it did not get
the full 10 points down.
What’s next?
Daily closed at 2093.25, this is the 8th consecutive session
above the daily 200SMA. It was a bullish engulfing candle similar to the
October 22 session.
This is quite hilarious and fascinating because October 21 and October
30 both gave the bears false hope with the daily bearish engulfing candle setup
just to sticksave at daily 8EMA and squeeze on next day.
Two immediate targets have been fulfilled; the last
immediate target still remains at 2107.
Recall the intermediate targets that we mentioned from a couple nights
ago. They are still valid; in the case of a bull acceleration breakout. The
intermediate targets are 2120 and 2134.
(There’s a difference between immediate targets and intermediate
targets. Immediate targets are the high probability targets that we provide
with a high win rate since the inception of these updates. Treat intermediate
targets as a longer term roadmap in mind.)
For short-term bears: Break below
2065, then immediate targets are 2055, 2050, 2040 and 2030.
Plan for tomorrow: Being
cautious of a potential rangebound shakefest/consolidation day based on price
channel. We're still trading smaller position sizes this week for the time
being.
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Our Swing Position
- Added 10% IWM Dec ITM Calls
Total = 30% Dec Shorts (SPY+QQQ) and 20% IWM Dec Calls
To reiterate: we are not great swing traders; this is a long learning
process. Our swing account represents only 20% of total trading dollars and
the day trading account represents the other 80%. For example, if the day
trading account is 800K USD, swing account is 200K USD.
