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Diamond Hands | Short Russell

Swing Trading

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Diamond Hands | Short Russell

June 8, 2021 in Trade Recap

I’ve said for over a decade that the Russell 2000 Index (Futures Symbol: RTY) is the pot-limit Omaha of trading. It’s so fun to play, yet frustrating the entire time.   It’s easy for a position to go from first to worst, often in a matter of minutes.  The dreaded river changes everything.

Fortunately, trading is not the same as the binary outcome of a single hand of Omaha, so when you’ve got a strong hand, and proper bankroll management, you can wait for the math to work in your favor. Over the past few weeks, we’re seeing the RTY lead the stock indices, approaching the all-time highs from early in the year.  Part of the narrative in this leg higher is around the Wall Street Bet stocks, including GME and AMC, requiring hedging in the Russell.

When is this game or movie over? I’ve got no edge there.  All I can do is believe in the math, mean reversion, proper entries, and my DIAMOND SHORT HANDS!  ?

Commodity Futures Trading Commission. Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Is the Nazzy Rally Over Or Just Resting?

July 26, 2020 in Education, Trade Recap

We have a big week ahead for earnings, including a Super Thursday when GOOG, AMZN, and AAPL all report after the close.  After a torrid, painful move last Monday, we were fortunate to spend the rest of the week getting healthy in our core MNQ short position and now continue to trade around it this evening on the futures open.

The ADX is bear-neutral here in the low 400s with the one-week POC and LOTS of overhead supply up near 845.

Working targets at 401 (target literally just hit while writing this post) with adds at 549.

Trade Like You Mean It!

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Commodity Futures Trading Commission. Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.