Trade Recap for Tuesday 8-1-23

Trade 1: $QQQ 380p

• Reasoning: rejection at 382.50 and a break of 382

• Entry on the contract: 1.00

• Exit on the contract: .69

• Size: small

• Profit in percent: -31%

Explanation

Today, QQQ was starting with a gap down into the 382 support level and failed to reclaim the previous low day’s low at 382.50. This told me that $QQQ was setting up for downside continuation into the 380.85/380 support range. After the entry, QQQ consolidated at 382 and was setting up for a drop. Right at 7am we had economic data that came out which ended up stopping me out following this news. Right after the stop out. $QQQ broke down the lows and hit 30%.🤦This happens but we kept it light since it was likely we saw chop again today.

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Trade 2: $NFLX 450c

• Reasoning: relative strength

• Entry on the contract: 2.46 avg

• Exit on the contract: 3.95

• Size: medium

• Profit in percent: +60%

Explanation

Today, NFLX was showing inraday relative strength following the reclaim of the 430 level yesterday. The plan was to go long on NFLX over the 440 resistance. When $SPY and $QQQ sold off this morning, $NFLX was one of the few names that barely budged and was holding at its highs. Since NFLX was showing relative strength, all we needed was for the overall market to show support to help it get the breakout. When $QQQ reclaimed the 382 level this is what triggered NFLX to breakout over 440. On the 440 break I went long with the 450c for a push into 442 and then 445. We progressively sold as it came into our targets. This was a larger sized trade when comparing it to $QQQ because of the relative strength setup.

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