Wednesday, November 9, 2011

Huge gap down - intraday update

We started the session with a huge gap down. We broke the premarket low (= also morning low) but then reversed. - fake-out 1. After a spike up, we started basing under the morning high, broke it and after some choppiness, reversed lower, fake-out 2.

More later after the close, I'll post some charts.

Thank God I had my covered call and bought the puts. It protected about half of my gains, so closed the entire position (including the last SPY-longs). The SPY-trade for an overall small loss (after a great gain yesterday... OUCH!), but the option-trade for a very nice profit!
Later on I tried the break of the morning low that failed, then the break of the morning high, another loss. Two losses, so I'm done for today, no matter what follows. Feeling bad because my stop on the first trade didn't trigger (price 'jumped' over it), so I had to cover higher than wanted. That hurt the most...
1st trade: short SPY 124.29, out 124.66
2nd trade: long SPY 125.28, out 125.05

No luck today, too much chop, let's wait what the close brings.

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