Consumer confidence index is lower than expected today: Act. 47.7 / Est. 53.5 / Pre. 53.1
SPY broke the weak support at mid-channel today even though it was mostly a side way day. The stronger support is the bottom channel at 105.5 - 106, which could easily be touched with another day like today. We should find out if the channel holds by the end of this week.
Last 3 days drop in the US market corrected all the gains in EUR/USD pair from two weeks ago to the support of 1.4800. It will be interesting to see how it fairs with spy's bottom channel.
Visa has come down to mid-line support of 73 from high of 77. It is perceivable that it will bounce off this level similar to the dip in late July, early August. It seems to sag after the initial pop, then slowly trend upward again. We will see if it will hold the mid-line support tomorrow.
On the personal side:
I had another drawdown on Friday around $900. I over scalped FAS. Monday I had a $1200 loss, and today, Tuesday, I added $2200 to the streak. Both of my trading accounts are locked under day trade.
I won't be able to trade unless I deposit money to bring account back to day trade limit or I can trade FX to gain the losses back. I don't want to deposit additional funds, because I don't think that will fix things in the big picture.
So I will sit on my hands most of the time until I see clarity in FX trades. My lot size is 100k, which can be hazardous if I don't enforce stop loss well. I've lost plenty in FX with that lot size. 20k is the minimum lot size, it eats up commission pretty easily. I will reduce it to 60k to see how it works out.
I know I should monitor my thoughts/emotions during trading hour, but it is so easily forgotten when push comes to shove. It's like a chemical kicks in the brain, small doses of adrenaline rushed into the hands. Fear and greed in a split second caused me fortunes.
Starting tomorrow, I will really slow down (kinda have to...) before more damage is done.
The only "good" trade that worth mentioning is the Visa call on Oct.6 with entry of 68.25. It reached target of 75+ almost 1 week later. I exited near top at 68.25 on Oct.21 when spy dropped at the end of the day and V formed a shooting star. This trade worked because There was little emotion involved. The reasons for entry and exit were pure technical. I should do this kind of trades more, and find them on shorter time scales.
- the journey goes on ...
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