The PERFECT Trading Plan, 12 Feb 2023
🖼 Daily Technical Picture 📈
➤ Here's my plan of attack for the early part of next week if all things go according to plan:
⦿ I am already holding a small short position in the equity market. I'm looking for further downside to play out in the next couple of weeks. The major catalyst is the US inflation data release this coming Tuesday.
⦿ As illustrated on my chart, this is the idealized path I would like to see the price take in accordance to my trade plan. I would like to see the price move flat or higher on Monday. This is very possible given that there might be further buying support flowing on from Friday.
⦿ On inflation data Tuesday, I would like to see equities sell-off. A sufficiently aggressive sell-off will provide me with the opportunity to add to my shorts to a maximum position size.
⦿ I would like to see prices continue falling for the remainder of the week and beyond. The primary price target would be down to 390 on SPY or 3900 on SPX500.
❓What can go wrong?
⤑ A lot. The second worst scenario is that Bulls take charge on the release of the inflation data and drive prices aggressively closing beyond 417 on the SPY or VIX collapses below 17. This will force me out of my position with a loss. Although It won't be disastrous given my small position size.
⤑ The worst scenario is after adding to a maximum position, price reverses aggressively higher beyond 417 on the SPY or the VIX collapses below 17. This will inflict maximum loss.
➤ Conclusion: It nevers goes to plan.
➤ Here's my plan of attack for the early part of next week if all things go according to plan:
⦿ I am already holding a small short position in the equity market. I'm looking for further downside to play out in the next couple of weeks. The major catalyst is the US inflation data release this coming Tuesday.
⦿ As illustrated on my chart, this is the idealized path I would like to see the price take in accordance to my trade plan. I would like to see the price move flat or higher on Monday. This is very possible given that there might be further buying support flowing on from Friday.
⦿ On inflation data Tuesday, I would like to see equities sell-off. A sufficiently aggressive sell-off will provide me with the opportunity to add to my shorts to a maximum position size.
⦿ I would like to see prices continue falling for the remainder of the week and beyond. The primary price target would be down to 390 on SPY or 3900 on SPX500.
❓What can go wrong?
⤑ A lot. The second worst scenario is that Bulls take charge on the release of the inflation data and drive prices aggressively closing beyond 417 on the SPY or VIX collapses below 17. This will force me out of my position with a loss. Although It won't be disastrous given my small position size.
⤑ The worst scenario is after adding to a maximum position, price reverses aggressively higher beyond 417 on the SPY or the VIX collapses below 17. This will inflict maximum loss.
➤ Conclusion: It nevers goes to plan.
🏆 eToro Popular Investor 💰
✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
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