Scalping SPY During Nice Two-Way Action


SPY has had lots of scalping opportunities I thought it might be interesting for some to see where those are found. These are the scalps I made today in my cash accounts, small positions each time. I used the 2minute, 5minute chart and hourly chart, bollinger bands, and the 5ma and 10ma. Along with support and resistance lines previously drawn (I spend lots of time at night/weekends finding it).
I traded the 277 put and 279.50 call. at 9:57am in a put, it was obvious 279.42 support was going to fail. 11:01am out of that put when it looked like a bottom was formed (announced above). Waited for confirmation and got a huge green candle. There’s usually fade after that so waited and made my entry at 11:15am with a call (announced above). Out at 279.42 resistance 11:31am. Back in a call on the bounce off support at 278.90 at 11:38am, surprising monster green candle with volume broke resistance. Found opportunity to add to that position on the bull flag pull back after that giant green 5m candle. held it a little long and after it didn’t break 281 a couple times got out at 1:02pm. Leading up to FOMC minutes release a triangle consolidation pattern formed so waited for a break, the pattern broke and bounced as usual, so I bought a put at 2:04pm. Next candle almost shook me out. but we got a nice down move and I got out after it bounced off 279.42 support at 2:29pm. I figured we would either get a bounce or drop into close bounce made more sense and so when SPY hit 279.42 support at 3:42pm I bought a call and sold it at 4:14pm
I use the 5minute chart for confirmation along the 5ma/10ma and support lines
I have studied the death out of SPY, traded it nearly every day. I announced a couple of these scalps but as I’m getting more confident I will alert more, but you need a cash account or 25k in a margin account to scalp this much. And never use your full account on a scalp, things happen quick.
Study SPY or another stock like this and you can do this too. It has taken a few months to get good enough and confident enough to scalp like this, but I felt really good after today

I watch AAPL/MSFT/AMZN/GOOGL/BAC/BRKB/JNJ/NFLX/FB/NUGT/GC/ES all during the day as well since SPY is an index affected by all of these stocks, just FYI. I have traded them but find I do better when I just focus on SPY
BTW 6 months ago I would have just watched a day like yesterday and made all the wrong moves. That’s when I learned watch and learn more than you play until you get comfy.

Leave a Reply

%d bloggers like this: