Daily PM Prep - April, 05

Prep for Closing Session

MARKET CONDITIONS

SPY - Strong down move happened after releasing of economic indexes. After that the market has consolidated. Expect the market to remain in. If we take the 155 level back into the POC I would become a little bullish, but that is unlikely, buyers will need a lot of volume for this move. The most likely scenario is for the SPY to remain inside the 154.70 | 154.25 | 153.75 range. If we break down 153.75 and hold, then the close might be controlled by the bears.

Bias: Neutral bearish
Accuracy: 30%. Market was stronger than anticipated. It was able to slowly go above the 155, but there is not enough time left to see if it will hold. Have to wait until tomorrow´s session.

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Updated at 13:30

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Educational purpose material only. Use this information at your own risk
Stocks may be added to the selection sheet at any time. They are used as a guide to select which stocks I will trade and set alerts . It does not mean that I follow all of them, that would be crazy.
The Accuracy information is for my own use only. It is reviewed after I am done trading. This is just a way for me to measure how is my reading of the market and my confidence in it. I suggest you develop your own way to do this.
The morning sheet will be updated between 8:00 and 9:00
The afternoon sheet will be updated between 13:00 and 14:00

Trade Review - April, 05

Stock Selection Information

Benzinga Market Primer: Friday, April 5: Non-Farm Payrolls Edition.

Watch List Reason - There was no relevant news on it, but had some pre-market volume. Not much overall pre-market volume today.

Pre-Market Volume - 1.83%

Trading Plan - Sres @ 33.0 || Ssup < 32.75

Management

Entry Setup used: Scalp on CCI divergence

Trading Comments

There was some selling being done at 33.10, and use the divergence to confirm the move. The target was the VWAP.
There was some buying at 33.00 which forced me to close the position.

Evaluation

The level 33.00 was identified during the morning prep as a potential level for a short at resistance.
The CCI divergence with the selling on the tape, was a good reason for a scalp trading.
I should´ve traded with 200 shares instead of 100, which is my size for the morning trades. With that size I could´ve manage the trade another way, buying back 100 shares at 33.00 and hold the other 100 for the target at 32.95.
This was a scalp play, so I don´t regret getting out where I did. CCI was alreasy on a oversold level. After that I watched the stock, waiting for a Lower High setup, that did not happened, suggesting the buyers were actually in control.

Daily AM Prep - April, 05

Prep for Morning Session

MARKET CONDITIONS

World Markets News: Asian markets finished mixed as of the most recent closing prices. European markets are sharply lower today with shares in Germany off the most. Germany is the strong economy in Europe, so this is a sign of a bearish day.
Economic Calendar

SPY - Is trading in a range between 157.20 and 153.50 and the Point of Control(POC) is at 155.50. Yesterday we traded around the POC after trying to break higher and failling. Today we are gapping down below an intraday level of 155.15 and likely to test the 154.25 / 153.50 area where buyers may be found, holding the prices. If we break below 155.50 and hold below, then we become very bearish for the day.
Be aware of the economic number beeing release before the market open.

Bias: Bearish for the morning
Accuracy: 80% - the down move happened before market open on the release of economic numbers. Buyers were found at expected level, but after the open it moved sideways.

AM Stock Selection Sheet download
Updated at 8:20 am.