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Monday May 16 - Day Three

|Includes: DIA, J.C. Penney Company Inc. (JCP), LOW, QQQ, SPY

 Today was only my third day trading session of the summer. Last Tuesday was a miserable day for me trading-wise. On Wednesday I drove to New York for the Market Technicians Association Annual Symposium at the New York Stock Exchange. After coming back from a short and losing two day trading week, I got some much needed relaxation and socialization time in this weekend. Last night, I did some preparation for my trading day by ripping through charts, looking at futures, and checking out the news (mostly by watching Bloomberg at the same time). I made sure to be in bed by 1 am. Waking up at 8:30 this morning was not an issue. I ate a good breakfast and felt energized going into the session.

I started my day by looking through the various equity indexes to gauge where the market was. For the most part, things started off a little bearish, looked bullish for a little while, then slipped lower into the close. During the bullish looking stretch, I found JCP on my radar. It just broke out to the upside from a low tight range after a pullback from new highs. From the breakout, price pulled back and I entered a long position. I did not put a hard stop in right away, and the position suddenly dropped past my mental stop. So I exited the trade for a loss of about $305. This was not exactly my ideal start to the day, but I kept watching JCP. Almost immediately after being stopped out, it set up bearishly and I entered a short position. From there JCP trended lower throughout the day, during which I made multiple trades in the direction of the trend. A little after lunch time, Bloomberg started talking about the retail sector and compared JCP to LOW (the companies, not the stocks). This is when the trend ended. Big surprise there.


Thanks for being a part of! Always trade with a stop loss and manage your risk appropriately.

Happy Trading,

Jason Gordon