My timing was a bit off when I sold my 247/248 Call Credit spread 2 weeks ago. I have not defended the position yet because of the MACD crossover occurring which is signalling a potential pull back to my first target of 244.50 area. I'm starting to get better using the MACD especially on the daily which is my choice time period for selling my Call and Put Credit spreads. I've got two weeks to go before my Call Credit spread expires, with a bit of luck I'll get out safely. I'll be looking to sell a Put Credit spread after the pull back and a recross upward signaled by the MACD.
A few days ago I found myself attempting to guess when to sell my Call Credit Spread in the SPY and it finally occurred to me that I was ignoring Market Law #4 on my longer swing trades which for me is my options trading. Market Law #4 states "If a stock fails to make a new low, after it has already made 3 or more lower lows, it will make a new high. Conversely, if a stock fails to make a new high, after it has already made a series of higher highs (3 or More), it will make a new low on the next move." Powerful! So last Monday, July 10th the market had a hard sell off intraday and recovered, it was near the end of the day that I realized that the daily chart had attempted to make a lower low but could not, that's when I knew we were going to make a new high. So to answer my question, when to sell my Call Credit Spread? The answer is after it makes a new higher high, not at the previous high, Duh! I say Duh, because I sold my CCS 2 days early 🙁
It's been awhile since I last posted, many changes have occurred in the trading business such as Pristine.com is no more and has become T3 trading. I've been a student of late of the Options market learning, trading, and mentoring. Finally realizing that I needed to back away a little from my directional trading. I've switch from trading Equities (Stocks) to trading futures, the ES in particular.
My trade of the day finally came this afternoon as I waited for the up trend to end on the 5 minute chart of the ES. The first setup I hesitated and missed out on but soon I found a 2nd entry just under and inside bar COG. This chart has so many things that can be learned from for the Pristine trained trader...
As price sold off and headed to my 1932.50 target area, price action was able to find minor support much higher at the 2020.50 area. Since price has rallied hard and should breakout above the 2106.50 area if the uptrend is going to continue on the weekly chart. My guess would be that price will have to wait until the rising 20ma catches up before the ES breaks out higher...
Price is currently trading @ 2037.50 and looks like it's going to test the Daily MS area at 2054.50. A break below MS will confirm our newly formed downtrend on the daily chart.
050182016 ES Daily
After a year hanging with the guys at the Day Trading Zones.com I've learned the importance of knowing where the puck (price) is going. Price is going to retest the 1933.50 area of minor Support mS on the weekly chart. It's not if its going to get there, the real question is when? Learning to trade this is trading mastery at the highest level...
05182016 ES Weekly
Day Trading Update: Wow!
It's been 9 years as of this upcoming June 30th since I started my trading journey towards mastery. I'm no longer struggling with my directional trading, I'm no longer worried that the wheels will fall off like so many times over the years. This is the most exciting time in my life to realize I've finally made it, making money every day. Many years I've spent doubting my method (The Pristine Method) and have spent more money on education, etc. Was it worth it, I guess the whole process is worth it. All I know is that I had to learn to trust my method with blind faith, focus on what is true, price Support and Resistance, and do what you are supposed to do when you are supposed to do it. I've spoken with many a profitable trader over the years and none of them have said the journey to profitability came in 2-3 years. All have said it was 10+ years of hard work, blood, sweat, and tears. So, I guess, I'm a year ahead of most... Wow!
I've been focusing so hard on the 60 minute chart while day trading the ES I almost overlooked today's break of the 2071 area which officially ends the uptrend on the ES on the daily chart. The weekly bar is going to close wide and red so I'm expecting further selling next week. My target on the weekly is a retest of the 1933.50 area which I'm sure a lot of you will probably think I'm nuts, but this is minor support on the weekly and that is where the target is, the question is how to profit from it...
04292016 ES Friday
04292016 Weekly ES
For the past 7 days price has basically gone sideways on the daily chart of the ES but now appears price wants to move lower. The 2035 area is key, if price moves below this area of Major Support then the uptrend will be over for now on the daily time frame. Our next stop would be the 2012 area of the ES where buyers will step in.
ES Thursday 04072016 pm
Overnight Price has pushed through the 2048.33 area becoming minor support (mS) and is knocking at the door of our 2067.75 area or T1. T2 is close by at 2091 and the longer target found off the Weekly chart is at 2098. I took my profits on my May 20th 198/199 put credit spreads and I still have my Call side on 209/210 of my Iron Condor but leaning long by one contract (back ratioed). I do have another Iron Condor out further the June 17th. 210/211 call credit spread which I'll look to back ratio on the next pull back to mS at the 2048 area. I also have the 199/200 put credit spread making a nice profit at this time, but not quite enough to take profits yet.
ES 03302016 am Wednesday
After Fed Chairwoman Yellen spoke today the market took off like a rocket and since my portfolio was net net long I was thrilled to say the least. I can see my T1 target from here, and T2 is close behind at 2091. We could be at T1 overnight but T2 could be rough getting too. All I can say is that I'm starting to be right, more often than not, thanks to the Pristine Method and a lot of blood, sweat, and tears...
ES Tuesday 03292016 pm
Posted in ES Market update
Price recovered after today's retest of the 2022 area of the ES and formed a spinner type bar on the Daily chart. I was real happy with my trades from Friday, and the market held up good today even though price put in a higher lower on the 60 minute chart and may be in the process of continuing lower. We will see...
ES hourly 03282016 Monday
ES 03282016 Monday