Day 1 of my $100 account challenge.

Tuesday after the Memorial Day weekend SPY gapped up $8 at the open. Looking left has shown when it gaps up like this there is generally a solid profit taking with a good dip buy opportunity. I was debating between focusing on SPY or QQQ and went with SPY just because I forecast it better with my daily watchlist. 

My daily watchlist is made up of the big 7 Tech stocks, the VIX, DJI, NDQ, and DXY

They generally help with anticipation of how SPY and QQQ are moving or will keep moving.

At the open the VIX was rejecting the $21 resistance level. For the most part SPY and QQQ move the opposite direction of the VIX. With the VIX rejecting the $21 level it told me the profit taking could be short lived. Watching the big 7 they were mostly showing the same profit taking with AMZN, MSFT, and TSLA opening with solid green candles. 

Bohen has taught the Red Candle Theory, well I've adapted the same with price action doing the opposite with a Green Candle Theory. If I were in puts trading the downside I'd get out on that 1st solid green candle. The bounce on SPY and QQQ here this morning was substantial on the 5 minute candle and confirmed on the 1 minute candles that it was a unanimous bounce with all 5 of the 1 minute candles green with volume.

I entered way early in comparison, but looking for a quick 25% on such a small account would be a solid start. 

SPY bounced right off the $584.50 level which gave me more confidence of entry. I took the $588 call entering @.59 risking the low of the previous red candle and just rolled my stops up along the way until I had confirmation of a pull back or reversal. I got in with the 5 minute candle close of $585.28 It reclaimed VWAP @$585.80 and rolled my 1st stop to a failure or rejection of VWAP. My next resistance level was $586.32. 

It broke through that level and I rolled my stop up to the rejection of that level. I kept rolling my stops up to the low of the previous candle. I eventually got stopped out when it broke the $588 level and pulled back below. I held it for the first break as it recovered, but when it broke it again with diminishing volume and the VIX having multiple green candles and the rest of the watchlist showing signs of failing support levels or rejecting resistance levels I took the win even though this was most likely just a sign of accumulation as it wasn't rejecting with increased volume.

Day 1 trade $588 SPY call in @.59 and out @ 1.05 a 78% win of $46 

It would prove to be accumulation, but the purpose of this is to take trade responsible and take wins... not home runs. Down the road when I have position size I can leave a few runners for a home run... not now.

Solid trade with the anticipation of a bounce of a red to green move and managed it well when it beat expectations.