I haven’t been trading too actively lately as I’ve been busy with other things, but today I had a little time and decided to place some trades that I thought offered decent risk/reward opportunities.

Trade 1: $SPY

$SPY closed down Friday for the third consecutive down day and was $9 from the highs earlier this month. Following the tragic events over in France that day, $SPY drifted down in the after-hours with a low of $200.76. Coming into today, I had more of a bullish bias given the post-market flush that had already occurred. As you can see from my tweets and the charts below, I got long a “feeler” and looked to add above $204, as that would be price confirmation of a reversal. The trade worked out better than I thought, as $SPY closed at the highs of the day at $205.61. I trimmed a good chuck of my position by the close but am still long some. Going forward, I think $207-$207.50 is a reasonable target for this type of trade.

Long some $SPY from $203. Would look to add on a hold above $204.

— Jake Huska (@MarketPicker) Nov. 16 at 10:44 AM

$SPY $204

— Jake Huska (@MarketPicker) Nov. 16 at 12:33 PM

Unloaded more $SPY long above $205. #Intraday — Jake Huska (@MarketPicker) Nov. 16 at 03:12 PM

Strong close in $SPY, closed @ HOD. I go out net long. $AMZN $TSLA $VXX

— Jake Huska (@MarketPicker) Nov. 16 at 04:00 PM

OUT

$SPY 11.16.15 (after-hours)
SPY after-hours (30min)
$SPY 11.16.15 (30min)
SPY intraday (30min)
$SPY 11.16.15 (5min trade mgmt)
SPY intraday (5min)

Trade 2: $TSLA

$TSLA had a strong opening drive, and I had an upside alert go off above $211, which was a level that acted as intraday resistance Friday. After seeing the stock consolidate above that $211 level, I decided to get long. As you can see from my tweets, $214-$215.50 was the spot I was watching for price confirmation to add to my position. The stock closed within this resistance zone today. Going forward, I’d like to see a hold above today’s highs and a thrust above $215.50. Above that, I’d look at $218-$220 as potential resistance.

$TSLA trying to break downtrend. A consolidation above $214-$215.50 would be confirmation.

— Jake Huska (@MarketPicker) Nov. 16 at 11:56 AM

$TSLA 11.16.15 (30min updated)
TSLA (30min, updated)

Trade 3: $AMZN After its huge run up above $675, $AMZN closed down on Friday for the second day in a row. As you can seen in my first tweet below, the stock was pulling into its uptrend line and support area around $620-$624 today. If the market was going to reverse upwards, I thought this had a high probability of reversing as well given it was pulling back to technical support. I played this setup on the long side via calls rather than the stock itself (I don’t trade options too much; I just decided to do so in this case primarily because I don’t like trading AMZN stock due to how whippy and whicky it can be intraday). As you can see below, the stock closed up for the day and closed $25 off today’s lows.

$AMZN coming into uptrend line, 50pts off last week’s highs. — Jake Huska (@MarketPicker) Nov. 16 at 12:20 PM

$AMZN positive. #Intraday

— Jake Huska (@MarketPicker) Nov. 16 at 02:07 PM

$AMZN consolidating underneath $650… — Jake Huska (@MarketPicker) Nov. 16 at 03:24 PM

 

$AMZN intraday (5min)
AMZN intraday (5min)

Trade 4: $VXX

Similar to the $SPY long idea above, I decided to play $VXX on the short side. As you can see, I initiated my short position after the opening drive lower and then added to my position on the break below the opening range (i.e., price confirmation). I covered on the way down and ended up getting flat into the close.

Covered more $VXX short below $20. #Intraday

— Jake Huska (@MarketPicker) Nov. 16 at 03:11 PM

 

VXX chart
VXX chart

VXX intraday (5min)

VXX intraday (5min)

What I want to emphasize in this trade review is the importance of waiting for price confirmation to add to your position. By adding to your position once you have price confirmation, the risk/reward of the trade will become more skewed in your favor, and you will be able to take more out of the market on a consistent basis.

 

Let me know if you have any questions or comments.

Jake

Price Confirmation: $SPY $TSLA $AMZN $VXX