Sir William Wallace
I trade options and stocks, primarily $SPY options day trades. A lot of people helped me along the way and this blog serves to document what I've learned to help others make money in the stock market.

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.

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