We were 2 to 1 long going into the rate decision and gave back a couple hundred initially but closed the day up about a $1,000.00 due in most part to profits taken in the GLD. We also added to most of our current holdings after the market turned back positive and got some nice gains in the afternoon session with ADSK, BA, IYT and UTX. Yesterday I sold half of my DUG position on the big move up looking to average in at better prices. I added it back today at the lows around 39.10. Also we exited our position in RESP after the huge move up today. Good thing we were loaded up with huge size (100 shares) on that move. We need to work on our position sizing and try to start with more shares on promising setups. Maybe we will be able to pick some up again at better prices. Also we exited our short in TIF and INT today. I had already decided to close the position in TIF if the reaction to the Fed turned positive but I hesitated on the exit and lost more than I should have. Oh well… overall I am happy with the day.
We did not do much ahead of the Fed today. Generally Fed days are slow and not worth the risk so we just took the best signal with close stops. We were long early in the morning as the futures broke through the first support level and had a couple spikes in selling. The first entry was a bit early and since it was only 1 contract we were not compelled to take profits quickly. Added two more contracts as it pulled back towards the lower support level but got a bit antsy and covered before the move up. I think with the Fed meeting we were a little cautious which affected our trading. At 11:00 we took the short signal after price broke down on resistance again adding too quickly and not having the patience to hold on, plus it was lunch time. Overall, we probably should have kept our distance from the market and just monitored our remaining positions.
Trades: 2
Contracts: 6
P/L: -180.56
The second day of the Fed meeting will end today with a report in interest rates coming out at 1:15 CST. We pared our exposure yesterday before the close to ensure some profits. Good luck to everyone.
Pre-Market Gainers: CGI, EQUIX, MA, CYH, LAZ, FIC, IVGN
Pre-Market Losers: HURN, BWLD, OCR, SPSS, OMTR, GRMN, CTV, WYNN
Futures looking to open up close to yesterday’s highs.
Going into the Fed we were a little unsure as to what we should do. We considered multiple options, hedging , cutting half, cutting beta etc… but when the market began the sell off this afternoon we went on selling spree. We were up over $1,500 today on our positions and decided that we wanted to book some profits with our uncertainty about the market. This follows along with our trading rules… RULE # 274 If your unsure about what to do JUST GET OUT!!! Here is list of our sells…. BA, XLV, XLU, GWW, ARG, DUG, INT and BBY .
Today’s volume was pretty light, therefore the setups did not come as easily as other days. I probably traded a little too much considering the lack of signals but still managed to squeeze out a profit.
The first trade was a long on the sell volume spike just after 9:00 when the Consumer Confidence numbers came out. Added 2 cars on the way up and got out of 2 close to the top. I messed up and added back to the position as it made new highs trying to catch a quick buck STUPID! I covered two just below the first support and close the trade totally just after 10:00.
The second trade was not really a technical setup that we usually trade, but I noticed the TICK reverse up to 550 and price was not able to break through the support level. Added 2 on the way down and got out at good prices.
My last trade was good in theory but bad in execution. I entered the trade to quickly, added as it made a false move, covered two at the top and didn’t have the patience to hold until it broke the upwards trend line. Like I said, good idea but bad execution.
Trades: 3
Contracts: 14
P/L: +370.36
