Presentation on theme: "15 FB QQQ SPY trending higher while VIX is at 52 week lows. QQQ SPY trending higher while VIX is at 52 week lows. Earnings not until the end of the month."— Presentation transcript:
15 FB QQQ SPY trending higher while VIX is at 52 week lows. QQQ SPY trending higher while VIX is at 52 week lows. Earnings not until the end of the month but Fed Beige book release on 011613 could cause volatitilty. Earnings not until the end of the month but Fed Beige book release on 011613 could cause volatitilty. Entering a possible supply zone after a strong uptrend move. Entering a possible supply zone after a strong uptrend move. BUY THE RUMOR AND SELL THE NEWS BUY THE RUMOR AND SELL THE NEWS 2013 0115-0116 +5.27%SHORT 31.29 29.64
FB 1. BEFORE THE TRADE WAS EXECUTED 2. TRADE AT THE ENTRY OF THE POSITION 3. TAPE DURING THE OPEN POSITION 4. TAPE AT THE EXIT OF THE POSITION 5. TAPE AFTER THE POSITION WAS CLOSED. 011113
1 FB 1. BEFORE THE TRADE WAS EXECUTED 1 1 011113
1 QQQ 011113 THOUGHTS: Even though the market is trending higher, extended stocks can still pullback Or start selling off before the market turns lower. However, you are going against the general Tide if you short an uptrending market so a tight stop loss needs to be in place.
1 FB 011413 THOUGHTS: After a nice run up since mid-November (15 day run into December consolidation) And then another move higher for first two weeks of January 2013 (11 days), the trend seemed extended, going from around 17 to 32 in less than two months.
1 FB 011513 THOUGHTS: This was the announcement later in the trading day.
1 FB 011513 THOUGHTS:31.50 to 32 was the supply or cover short zone.
1 FB 011513 THOUGHTS: FB was pulling back to the 10 dMA and held around 30. I expect it to Go to 28-28.50 demand zone and hit 20 dMA as well near 28.50 by 011612.
1 FB 011613 THOUGHTS: Pre-market movement on the second day.
1 FB 011613 THOUGHTS:FB was moving higher in pre-market trading but couldn’t budge past 30.43, which Proved to hold as hours opened.
1 FB 4. TAPE AT THE EXIT OF THE POSITION 4 4 011613
1 FB 011613 THOUGHTS: With markets trending higher into the Fed Beige Book announcement and FB hitting 5% gains in less than 24 hours, it was time to exit to avoid the most likely bounce back as the markets drifted higher. To get to 28.50 could take another 2-5 days, so with the current market trending higher, position was exited.
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