First September Trade

The following information is for educational and entertainment purposes only. Rio Verde Trading and the author make no claim that anyone can or will achieve similar results in their trading.

September 1: An SPY buy setup on August 31 was confirmed today. Bought to open 35 SPY at 217.19.

September 2: Todays sell signal has me exiting this trade; sold to close 35 SPY at 218.38. Net profit $37.65, ROI 0.5%.

This is my first trade since my trade of June 16, kind of a long dry spell.

I almost missed this trade like the trade I missed at the end of August, again distracted by work. This time however, I did manage to get on my computer in time to enter the trade in after market trading, which starts fifteen minutes after close.

At that time SPY was trading at the 217.19 area, well below the previous days close of 217.38. My buy order was filled at 217.19.

Later that evening I discovered the official SPY close was 217.39, once cent above the previous days close of 217.38. This was not a confirmation of the trade setup of August 31.

Now the question was what to do as I was in a trade I should not have been in. SPY tracks the S&P 500 stock index, more specifically the S&P 500 futures contract. Normally when trading SPY I completely ignore the actual S&P 500 futures contract. However both the S&P 500 index and futures contract closed down; therefore I decided to wait and see what tomorrows action in SPY would be at the open. SPY opened strongly to the upside, so I decided to let the trade run until the close. The close confirmed a sell signal and a modest profit. It is nice when even mistakes turn out to be profitable.

Basically what happened is the S&P 500 futures contract confirmed the trade setup which I traded using SPY; that’s my rational anyway.