Day Trade SPY https://daytradespy.com/ Learn to Become a Confident Trader Mon, 18 Mar 2024 21:08:03 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.1 https://daytradespy.com/wp-content/uploads/cropped-dts-favicon-white-32x32.png Day Trade SPY https://daytradespy.com/ 32 32 Market Analysis Follow-up Report https://daytradespy.com/33950/market-analysis-follow-up-report-240/ https://daytradespy.com/33950/market-analysis-follow-up-report-240/#respond Mon, 18 Mar 2024 21:08:03 +0000 https://daytradespy.com/?p=33950 Market Analysis Follow-up  On Monday, U.S. stock indices witnessed an uplift, marking an end to recent declines amidst investor anticipation of crucial central bank meetings in the U.S. and Japan, potentially pivotal for future interest rate directions. The modest upward movement in major indexes like the Dow Jones, S&P 500, and Nasdaq reflects a cautious […]

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Market Analysis Follow-up 

On Monday, U.S. stock indices witnessed an uplift, marking an end to recent declines amidst investor anticipation of crucial central bank meetings in the U.S. and Japan, potentially pivotal for future interest rate directions. The modest upward movement in major indexes like the Dow Jones, S&P 500, and Nasdaq reflects a cautious optimism, despite the constraining effects of recent inflationary pressures and tight trading ranges. This week’s Federal Reserve meeting is particularly in the spotlight, with investors bracing for any changes to the anticipated interest rate cuts against the backdrop of hotter-than-expected inflation figures. The evolving market sentiment, now showing increased skepticism over an immediate rate cut in June, underscores the critical nature of the Fed’s forthcoming statements and economic projections. Amidst these financial deliberations, a noteworthy rise in builder confidence signals sustained demand in the housing sector, adding another dimension to the economic considerations facing policymakers as they navigate through inflation challenges and electoral timelines.

Ahren led the trading room today, with Hugh in the co-pilot seat. He is coming back from Florida on the way home. Today in the trading room we had the following trades.

Trade #1 OMG Trade: Entry at 3.83 at 9:35 with an exit at 4.06 we missed our target narrowly. Some of you may have exited already for a profit. We are still holding.

Trade #2 Scalp trade off of 61.8% retracement that turned into a bread and butter/ABCD pattern setup. We mentioned if you wanted to stay in longer you could have. We achieved a profit of .15 or $150 on 10 contracts from 3.95 at 10:03am to 4.10 at 10:07am. Price then reversed off this area near resistance at 515. We will see what the market holds tomorrow.

The Pick of the Day was for the 514 calls which you would have gotten in for average fill at 3.94 at 9:30am and an exit price of 4.18 by 9:31am for a .24 cent gain in 1 minute.

~Ahren

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Trading Room Video Recording – March 18 https://daytradespy.com/33945/trading-room-video-recording-march-18/ https://daytradespy.com/33945/trading-room-video-recording-march-18/#respond Mon, 18 Mar 2024 15:28:14 +0000 https://daytradespy.com/?p=33945 The post Trading Room Video Recording – March 18 appeared first on Day Trade SPY.

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DayTradeSPY Signal https://daytradespy.com/33943/daytradespy-signal-58/ https://daytradespy.com/33943/daytradespy-signal-58/#respond Mon, 18 Mar 2024 13:39:02 +0000 https://daytradespy.com/?p=33943 March 18, 2024 Today’s Selection SPY240322C515 Disclaimer: Options trading is risky. You alone are responsible for your own trades. Read 0haracteristics and Risks of Standardized Options before trading. Reading the Code Example (Not Today’s Selection): SPY240315C512 SPY: stock symbol 24: expiration year (2024) 03: expiration month (March) 15: expiration day (15th) C: C for calls, […]

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March 18, 2024
Today’s Selection
SPY240322C515

Disclaimer: Options trading is risky. You alone are responsible for your own trades. Read 0haracteristics and Risks of Standardized Options before trading.

Reading the Code Example (Not Today’s Selection):

SPY240315C512

SPY: stock symbol
24: expiration year (2024)
03: expiration month (March)
15: expiration day (15th)
C: C for calls, P for puts
512: strike price (512)


Trader Rules:

Rule 1: We look to buy within the first 2 minutes of receiving the trade. If you missed the time window, hold off until you get the next trade. These trades are meant to be executed in that time frame only. Always trade limit orders.

Rule 2: Immediately, we put in a ‘good til canceled’ sell order right after the purchase, at a sell price 5% above what you bought it at.

Rule 3: If the position is still open in the last 2 minutes of trading, the position should be closed for whatever it’s worth. No position should be held overnight.

Disclaimer: Options trading is inherently risky. Consider whether such trading is suitable for you regarding your personal investment objectives and resources. You alone are responsible for all your own trading. This site is not a recommendation but for educational purposes only.

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Morning Market Analysis https://daytradespy.com/33940/morning-market-analysis-225/ https://daytradespy.com/33940/morning-market-analysis-225/#respond Mon, 18 Mar 2024 13:17:35 +0000 https://daytradespy.com/?p=33940 March 18th, 2024 (9:00) SPY is up this morning as all eyes will be on the Federal Reserve’s monetary policy on Wednesday. On Friday we saw a push down as economic data showed that the UoM U.S. consumer sentiment index fell unexpectedly. We do not have any major news today, and tomorrow we have Building […]

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March 18th, 2024

(9:00) SPY is up this morning as all eyes will be on the Federal Reserve’s monetary policy on Wednesday. On Friday we saw a push down as economic data showed that the UoM U.S. consumer sentiment index fell unexpectedly. We do not have any major news today, and tomorrow we have Building Permits at 8:30am. Wednesday will be the big news day with the Federal Funds Rate, Projections, Statement, and Press Conference all in the early afternoon starting at 2:00pm. Chinas Shanghai Composite Index closed up .99%, with Japan’s Nikkei 225 Stock Index up 2.67%. Today we have earnings conitue with Science Applications, StoneCo and others. Later in the week we have FedEx, Nike, Micron Technology, and Accenture.

Going forward, we are bouncing off of support on a higher timeframe near the 508.50 level. Look to see if price can challenge 515.00 today. We did bounce near the 61.8% leel so if price gains momentum we could see price going higher on news on Wednesday.

Resistance:
514.75

Support:
511.75


Today in History:

March 18th, 1999 – Traders cheer as it appears the Dow will close above 10,000 for the first time in history. But it was just a tease as the index ends up closing at 9997.62 after last minute selling. The Dow would finally close above 10,000 11 days later.

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Pick of the Day https://daytradespy.com/33938/pick-of-the-day-223/ https://daytradespy.com/33938/pick-of-the-day-223/#respond Mon, 18 Mar 2024 13:15:05 +0000 https://daytradespy.com/?p=33938 March 18, 2024 Today’s Pick SPY240322C514   Disclaimer:  Options trading is risky. You alone are responsible for your own trades. Read Characteristics and Risks of Standardized Options before trading. Reading the Code Example (Not Today’s Pick): SPY240322P513 SPY: stock symbol 24: expiration year (2024) 03: expiration month (March) 22: expiration day (15th) P: C for […]

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March 18, 2024
Today’s Pick
SPY240322C514

 

Disclaimer:  Options trading is risky. You alone are responsible for your own trades. Read Characteristics and Risks of Standardized Options before trading.

Reading the Code Example (Not Today’s Pick):

SPY240322P513

SPY: stock symbol
24: expiration year (2024)
03: expiration month (March)
22: expiration day (15th)
P: C for calls, P for puts
513: strike price (513)


Trader Rules:

Rule 1: We look to buy within the first 2 minutes of the opening bell, soon after the bid/ask spread tightens up. If the stock is going against us at market open, we like to wait for it to turn around, then buy. Always trade limit orders, not market orders.

Tip: If the stock is moving very quickly making your buy order elusive, place your buy order for a cent or two higher than the ask. That puts you in front of the line, assuring you of a fill.

Rule 2: Immediately, we put in a ‘good until canceled’ sell order right after the purchase, with a 6% increase. To calculate 6% take your purchase price and multiply that by 1.06 to get that price.

Rule 3: If the trade is in a loss, assess the situation by determining what your risk tolerance is. We assess the situation when a loss is around 65%. That is when we will either determine to keep the status quo, average down or simply sell it for the loss. No follow up instructions will be sent out on what to do with the trade. The option is under your discretion on what to do, and yours alone.

The option often sells the same day but the position may need to be held overnight, possibly longer.  At times the trader may need to let the option ‘breathe’ and to be held overnight. No cause for alarm, should the stock turn against the trader in the short term.

Contacts for brokerage services:

If you have technical questions regarding how to place trades, please reach out directly to your broker/dealer.

Here is the contact information for some commonly used platforms:

Charles Schwab/ThinkOrSwim: 800-435-4000
E-Trade/Morgan Stanley: 800-387-2331
Fidelity: 800-343-3548
TastyTrade: 888-247-1963

Disclaimer: Options trading is inherently risky. Consider whether such trading is suitable for you regarding your personal investment objectives and resources. You alone are responsible for all your own trading. This site is not a recommendation but for educational purposes only.

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Trading Room Schedule https://daytradespy.com/33934/trading-room-schedule-48/ https://daytradespy.com/33934/trading-room-schedule-48/#respond Sun, 17 Mar 2024 17:14:31 +0000 https://daytradespy.com/?p=33934 Just a friendly reminder:  There is one link for ALL of the meetings for the ENTIRE WEEK. Monday, March 18th, 2024 – Friday, March 22nd, 2024   See you online!

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Just a friendly reminder:  There is one link for ALL of the meetings for the ENTIRE WEEK.

Monday, March 18th, 2024 – Friday, March 22nd, 2024

 

See you online!

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Market Analysis Follow-up Report https://daytradespy.com/33932/market-analysis-follow-up-report-239/ https://daytradespy.com/33932/market-analysis-follow-up-report-239/#respond Fri, 15 Mar 2024 22:50:11 +0000 https://daytradespy.com/?p=33932 Market Analysis Follow-up  It was quadruple witching and ex-dividend day for SPY, creating plenty of liquidity and, true to form, a drop in the stock, although dipping down to 508.36 was a bit extreme. Trading volume was heavy, coming in at over 107,614,000 shares transferring by the closing bell. Investors brought the price back up […]

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Market Analysis Follow-up 

It was quadruple witching and ex-dividend day for SPY, creating plenty of liquidity and, true to form, a drop in the stock, although dipping down to 508.36 was a bit extreme. Trading volume was heavy, coming in at over 107,614,000 shares transferring by the closing bell. Investors brought the price back up to close at 509.74.

Our trades were as follows:

Pick of the Day: 513 puts from 5.09 at 9:31 to 5.39 at 9:44 for its 6% gain. Incidentally, we are still holding some Pick calls from previous days, waiting to see what shakes out early next week.

Out of the Morning Gate: 511 puts from 4.47 at 9:45 to 4.74 at 10:01 for its 6% gain

DTS Signal: 510 calls from 1.19 at 10:07 to 1.25 at 10:00 for its 5% gain

$10k Challenge: 20 same day expiration 510 puts, bought at 1.51 at 9:48, sold for 1.77 at 10:02 for a net gain of 500, bringing our balance to 5,222, for a surplus of 476.

Scalp: 511 calls from 1.11 at 10:16 to 1.17 at 10:38. On 30 contracts, that nets out to 150.

Enjoy the weekend but remember, we are on Sunday night at 8 pm, ET for our weekly Intro to Trading/Week in Review. Click here to register.

 

~ Hugh

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Trading Room Video Recording – March 15 https://daytradespy.com/33929/trading-room-video-recording-march-15/ https://daytradespy.com/33929/trading-room-video-recording-march-15/#respond Fri, 15 Mar 2024 15:55:50 +0000 https://daytradespy.com/?p=33929 The post Trading Room Video Recording – March 15 appeared first on Day Trade SPY.

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DayTradeSPY Signal https://daytradespy.com/33923/daytradespy-signal-57/ https://daytradespy.com/33923/daytradespy-signal-57/#respond Fri, 15 Mar 2024 14:05:36 +0000 https://daytradespy.com/?p=33923 March 15, 2024 Today’s Selection SPY240315C510 Disclaimer: Options trading is risky. You alone are responsible for your own trades. Read 0haracteristics and Risks of Standardized Options before trading. Reading the Code Example (Not Today’s Selection): SPY240315C512 SPY: stock symbol 24: expiration year (2024) 03: expiration month (March) 15: expiration day (15th) C: C for calls, […]

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March 15, 2024
Today’s Selection
SPY240315C510

Disclaimer: Options trading is risky. You alone are responsible for your own trades. Read 0haracteristics and Risks of Standardized Options before trading.

Reading the Code Example (Not Today’s Selection):

SPY240315C512

SPY: stock symbol
24: expiration year (2024)
03: expiration month (March)
15: expiration day (15th)
C: C for calls, P for puts
512: strike price (512)


Trader Rules:

Rule 1: We look to buy within the first 2 minutes of receiving the trade. If you missed the time window, hold off until you get the next trade. These trades are meant to be executed in that time frame only. Always trade limit orders.

Rule 2: Immediately, we put in a ‘good til canceled’ sell order right after the purchase, at a sell price 5% above what you bought it at.

Rule 3: If the position is still open in the last 2 minutes of trading, the position should be closed for whatever it’s worth. No position should be held overnight.

Disclaimer: Options trading is inherently risky. Consider whether such trading is suitable for you regarding your personal investment objectives and resources. You alone are responsible for all your own trading. This site is not a recommendation but for educational purposes only.

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Morning Market Analysis https://daytradespy.com/33924/morning-market-analysis-224/ https://daytradespy.com/33924/morning-market-analysis-224/#respond Fri, 15 Mar 2024 13:20:39 +0000 https://daytradespy.com/?p=33924 March 15th, 2024 (9:00) SPY is down slightly this morning as the ex-dividend payment has reduced the price by about $1.50 overnight, as mentioned in our session yesterday. Today is triple witching day, when options contracts on stocks, indexes, and market index futures expire. This will lead to increased volatility as well as market volume. […]

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March 15th, 2024

(9:00) SPY is down slightly this morning as the ex-dividend payment has reduced the price by about $1.50 overnight, as mentioned in our session yesterday. Today is triple witching day, when options contracts on stocks, indexes, and market index futures expire. This will lead to increased volatility as well as market volume. Most of the stock options that you have seen recently during this upward move have been related to technology, and most have been calls, so look for the covering of positions. Earlier, we had news with the Empire State Manufacturing Index coming in lower than expected at -20.9 vs. the -7.0 that was expected. Also, we have the Preliminary UoM Consumer Sentiment report coming up at 10:00 AM, so expect a very volatile day.

Going forward, did I mention volatility? Trade light, trade quick, and trade nimble. Today will be another day of chaotic price action. I am currently interested in puts, with a neutral bias.

Resistance: 515.00

Support: 508.75


Today in History:

March 15th, 1915 – The World War 1 bull market starts a major leg up. Over the course of the next 30 days, stocks rise 19%.

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