Trade Recap for Wednesday 10/4/23

Trade: $QQQ 355p

• Reasoning: 3 step candle/reversal

• Entry on the contract: 1.61

• Exit on the contract: 1.93, 1.62

• Profit in percent: 20%

Today, we were starting with a slight gap up across the board and SPY /QQQ were both backtesting key levels. The game plan was to see if QQQ was going to backtest 357 and after economic data at 7am I wanted to see if it was going to fail at 357 to where we can take puts for a reversal. QQQ ended up making a lower low on the 5 minute which was the entry for puts. Got a small win on these

Trade: $CAT 260p

• Reasoning: relative weakness

• Entry on the contract: 2.65

• Exit on the contract: 2.52

• Profit in percent: 8%

Today, CAT was one of the top watches for a breakdown under 269. Today, CAT was starting with a slight gap down under 269 which showed relative weakness. At the open, CAT printed a weak 15 minute candle, where it consolidated in this range for 30 minutes before making a new LOD. On the LOD break, I entered puts but CAT quickly found support under 264 so I cut the position for a small loss.