3 Trades Explained $DIA $IWM $SPY


Trade #1

  1. I shorted $IWM three days ago by buying $TZA at $13.02 when $IWM was near the 70 RSI on the daily chart.
  2. My stop loss was to exit if $IWM closed above the 72 RSI.
  3. My trailing stop is to stay short unless $IWM closes above the previous day’s high.
  4. There is a potential that the 5 day ema acts as intra-day resistance.
  5. It is possible that $IWM goes to the 50 RSI or the 200 day moving average.
  6. I am currently up 6% on the capital at risk in this trade.

Trade #2

  1. I went short $DIA today by purchasing $SDOW at $21.67 as the $DIA chart was near a 72 RSI.
  2. My stop is a close above all time highs.
  3. If $DIA begins to pull back and the trade goes in my favor, I will use an end of day stop of a close above the 5 day ema.
  4. $174 is my potential first target.

Trade #3

  1. I sold $204 $SPY weekly calls for $1.20 and bought $207 weekly $SPY calls for .10 cents to create a $1.10 bearish credit spread when $SPY was near its 70 RSI. 
  2. If $SPY closes below $204 on Friday I will make $550.00 with the five contracts. This is a small trade for my account sizes.
  3. My stop loss to exit this trade is if $SPY closes over the 72 RSI on any day before expiration.