Trade Recap for Monday 8/7/23

Trade 1: $MSFT 327.50p

• Reasoning: failed to reclaim 330

• Entry: 2.66

• Exits: 2.93, 3.2, 3.5, 2.8

• Size: small

• Profit in percent: +31%

Explanation:

Today, MSFT started with a slight gap up off of the 326.50 support range and made a move into 330 where it started to see some sellers. The reason behind the entry was the double top off of 330 and a failure to reclaim. Also, QQQ and SPY failed to reclaim key levels so having relative weakness and pairing it with a market pullback is a decent setup. I wanted to keep it light due to the chop today but it ended up being a decent trade.

Chart:

Trade 2: $QQQ 8/8 370p

• Reasoning: 372 breakdown

• Entry: 1.05

• Exits: .76

• Size: small

• Profit in percent: -27%

Explanation:

Today, QQQ was showing more weakness when comparing it to SPY and both SPY and QQQ failed to reclaim key levels. When QQQ broke down under 372 this was my entry on puts looking for a sell off into 370. Shortly after the entry, QQQ battled at 372 before bouncing and stopping me out. Still a solid trade but didn’t have the seller momentum to break it down.

Chart: